Sentences with phrase «of higher equity valuations»

In an exclusive interview, value fund manager Stephen Yacktman discusses the impact of high equity valuations on the actions of value - oriented investors.

Not exact matches

«The current equity market valuation is certainly stretched in historical terms but it does not appear unreasonable based on the high level of corporate profitability,» he said.

After all, the currency fueling much of the deal - making — those companies» inflated equity valuations — is now depressed, and acquisition targets may prefer to hold out for a higher price.

The determination of Albertsons» majority owner, private equity firm Cerberus Capital Management LP, to carry out the IPO despite volatility in the stock markets underscores its confidence that it can fetch a high valuation for Albertsons.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

Equities really have had the best of all worlds these past few years, with earnings growth in the double digits and financial conditions remaining very accommodative, despite the recent rise in both short - and long - term interest rates.1 The combination of rising earnings growth and benign financial conditions is a powerful set of tailwinds which usually drives stock valuations higher.

These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially higher - yielding equities that in some instances may represent more downside risk than upside potential at current valuation levels.

«M&A activity globally is very high, which is common in the late stages of an equity bull market as both private equity and corporate owners look to cash in on rich valuations,» Lait explains.

Our general take on equities remains that valuations are somewhat on the high side, but with a dearth of investment alternatives, dividend - paying blue chips, such as those emphasized by the Dogs of the Dow strategy, remain an attractive option.

One challenge to our growth investing strategy in 2018 may be the high level of investor skepticism surrounding current valuations for US equities in general, and for technology in particular.

«Valuations of U.S. equities are quite high, and a Trump victory will trigger a massive selloff.

The impact of a stronger dollar is likely to remain a hurdle for earnings, but U.S. equities are also contending with high relative valuations and a likely increase in interest rates by the Federal Reserve (Fed) in the second half of this year.

Of course, that final line — that there is a new, higher «equilibrium valuation of equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great DepressioOf course, that final line — that there is a new, higher «equilibrium valuation of equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof equities» — is surely to remind some market historians of Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof Irving Fisher's famous line that stocks had reach a new «permanently high plateau» on the eve of the 1929 stock market crash which ushered in the Great Depressioof the 1929 stock market crash which ushered in the Great Depression.

Some members of the FOMC apparently «commented that the recent decline in equity prices needs to be viewed in the context of overall valuation levels, which they saw as relatively high, and a couple noted that volatility had begun to subside,» according to the Fed's minutes.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

The hard truth is that although rising valuations can continue a while longer, particularly if the European Central Bank or Bank of Japan add to their own quantitative easing programs, valuations, especially those for U.S. equities, are already high.

This recent instability comes as yields have jumped from July record lows and investors have become concerned about the implications of higher bond yields for equity valuations.

Bottom line: U.S. equities are the least dirty shirt of global equity markets, although high valuations keep our return expectations in check.

Also newsworthy was that members of the committee opined on asset valuations more directly than usual: «Some participants viewed equity prices as quite high relative to standard valuation measures.

Outside of a brief episode in late 1929 and the period from February 1997 to August 2001, US equity valuations have never been higher than they are today.

A trio of articles covers high year - to - date returns, valuations and, consequently, increased risk of small - cap equities, especially those with growth characteristics and in the technology sector.

Robust consumer spending is typically a friendly factor for the equity market, and may provide a reason to maintain equity exposure, in my view, despite high equity valuations seen over the past year and the lack of any significant market correction.

In this age of ultra-low interest rates and sky - high equity valuations, cheapness is nearly a forgotten concept.

Investors still cite the low costs of ETFs, but with the S&P 500 trading at a P / E ratio of 21x of higher, and earnings growth remaining persistently low, Narhi and Barr don't think equity valuations are worth the risk.

Of course, starting valuations always matter and one reason why returns for all equities are so modest is because valuation was sky high at the start of the time perioOf course, starting valuations always matter and one reason why returns for all equities are so modest is because valuation was sky high at the start of the time perioof the time period.

Advisers sharply increased allocations of client assets to U.S. equities, but some planners are cautioning against piling into a market where they see valuations as being too high.

When everyone believes in the inevitability of stocks, à la «Dow 36,000» (we'll get there by 2025 or so), equity valuations are high, past equity performance has probably been great, and the future equity premium is small — think 1929, 1972, August 1987 and February 2000.

Given the current high valuations of equities, and potential interest rate risk for bonds, I've decided to take a gradual, but accelerated, approach to rebalancing our portfolio.

Higher numbers of mature working - age adults (ages 40 — 60) go hand in hand with higher equity valuation levels and lower yHigher numbers of mature working - age adults (ages 40 — 60) go hand in hand with higher equity valuation levels and lower yhigher equity valuation levels and lower yields.

Lower rates do not always and everywhere imply higher equity valuations — see Japan over the past 25 years — two bear markets of 60 % each in a ZIRP environment.

Equity valuations are now extremely high, with global equity markets having added close to US$ 9.5 tn in market capitalisation over the course ofEquity valuations are now extremely high, with global equity markets having added close to US$ 9.5 tn in market capitalisation over the course ofequity markets having added close to US$ 9.5 tn in market capitalisation over the course of 2018.

In the current environment of rising interest rates, lower costs, and higher loan growth, we believe earnings and equity valuations for the banking sector should recover in earnest.

That's because when stocks have high multiples and tight spreads, there's little upside in holding them (future return has been brought forward to today) but there's lots of downside due to their equity valuations tendency to mean revert.

In contrast, the impact of an increase in inflation expectations has a more muted impact on equity valuations as the impact of the higher cost of capital is offset by higher nominal earnings growth.

When an assets valuation is low (i.e. equities in March of 2009) my target equity allocation would be higher than normal.

Putting aside the performance of bonds during the bear market beginning in 1980 (both because the starting yields on Treasuries were so high but also because the bear market was relatively mild as the decline began from relatively low levels of valuation), what's interesting about the above chart is how dependably bonds protected a portfolio during equity bear markets.

The outcome is so binary, in hindsight an equity valuation will be far too low, or high... I often notice that the market / investors can ignore debt for long periods of time — i.e. they value a company almost exactly like its debt free peer.

When market valuations are low the value investor should take advantage of the improved probability of higher prices by increasing portfolio allocation to equities.

Of course, when the underlying ratio is high, it implies that people are attributing high valuations to equities relative to other assets, and vice-versa.

Bonds have low rates of returns, and equities have high valuations.

Okay, so the value of the equity is zero, but maybe AIG can grow out of the situation with government aid, waiting for higher valuations to appear?

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Private equity fund managers are taking advantage of high property valuations to close out funds and distribute record amounts of cash back to investors.

Risk Disclosure: Alternative investment products, including real estate investments, notes & debentures, hedge funds and private equity, involve a high degree of risk, often engage in leveraging and other speculative investment practices that may increase the risk of investment loss, can be highly illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as mutual funds, often charge high fees which may offset any trading profits, and in many cases the underlying investments are not transparent and are known only to the investment manager.

With stock valuations relatively high now, this suggests starting retirement with a low allocation to stocks — as low as 30 percent — and taking withdrawals from the fixed - income part of the portfolio so that, in effect, you'll take on a higher equity allocation over time, he says.

The larger REITs have seen large buying for yield seekers, ETFs and asset allocators that has driven the valuation of large REITS like Simon Properties (SPG) and Mr. Zell's own Equity Residential Properties (EQR) prices up to 2 times book value and higher, while many of the smaller ones have languished and trade at discounts to their asset value.