Stocks, in general, are decent investments to hold over the long term during periods
of substantial inflation.
Not exact matches
There are some signs that
inflation could come out
of hiding in the next 18 months, but I would be very surprised if we saw a
substantial increase in long rates in the coming couple
of years just because there are too many disinflationary macro headwinds.
According to the Fed's models, this should generate
substantial inflation — despite years
of running evidence to the contrary.
Although the patches prevented an AMT explosion, the number
of taxpayers affected by the AMT continued to grow throughout the decade (figure 1) because (1) the regular income tax was indexed for
inflation, but the AMT was not; and (2) Congress enacted
substantial cuts to the regular income tax.
Naturally, as a central banker, I'll begin by observing that over the past two decades, most
of the world has experienced a
substantial fall in
inflation.
Mishkin noted «I am less optimistic about the prospects for core PCE
inflation to move much below 2 % in the absence
of a determined effort by monetary policy,» adding that «a
substantial further decline in
inflation would require a shift in expectations, and such a shift could be difficult and time - consuming to bring about.»
It is difficult to understand why the record burden
of consumer debt will be impervious to a rising unemployment rate, particularly when companies are facing a
substantial acceleration in wage
inflation in recent months as they try to shore up profit margins - making
substantial new layoffs inevitable.
Zvi Bodie, professor
of management at Boston University and author
of «Worry Free Investing,» thinks you should a
substantial amount
of your money in Treasury
Inflation - Protected Securities (TIPS).
The risk
of a more
substantial and sustained pick - up in
inflation would be heightened if the economy were to expand significantly more quickly than currently envisaged.
As usual, I don't place too much emphasis on this sort
of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion
of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period
of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk
of an oncoming recession, which would become more
of a factor if we observe a
substantial widening
of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains
substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent
inflation pressures, particularly if we do observe economic weakness.
Goods and services that can not be imported from Asia have had
substantial inflation in recent years — we shall only mention the cost
of health care and education.
So does the Accord, which I believe has been a
substantial contributor to the low rate
of inflation we now see in Australia: the Accord processes are not perfect but that is the nature
of compromise and human affairs generally.
The idea was that politically independent central banks would take control
of monetary policy from government treasuries that had become the de facto monetary policymakers during World War I and had created
substantial inflation in many countries.
Stating that the risk
of a
substantial fall in
inflation was greater than the risk
of a
substantial rise, the Fed lowered the federal funds rate by 25 basis points to 1 per cent in June.
In particular, following a quarter when falling petrol prices reduced
inflation, the higher level
of petrol prices in the first month
of the June quarter suggests that a
substantial contribution to the CPI is possible, which could take CPI
inflation close to 3 per cent in the year to the June quarter.
It appears that the extensive changes in the economy over the past decade — including a structural fall in the
inflation rate, productivity - enhancing changes in the labour market, corporatisation and privatisation
of public - sector enterprises and
substantial falls in the barriers to international trade — have led to an improvement in Australia's underlying rate
of productivity growth.
Though the loss was quite
substantial when you factor in years
of inflation.
Chris Keates, general secretary
of teachers» union NASUWT, said her organisation had argued for a «
substantial above -
inflation pay rise».
For most Canadians, ownership
of a family home provides a
substantial inflation hedge, and it also comes with
substantial tax benefits.
But that would represent a
substantial reduction in
inflation - adjusted income from $ 40,000 a year to $ 32,000, a cut
of more than $ 650 a month.
Better
inflation hedges (like gold) probably exist, but they come with the cost
of sacrificing
substantial long - term returns just to make you feel better about short - term
inflation gyrations.
As a result, Ben Bernanke feels that the risk
of a
substantial downturn has receded, and so, the next focus
of the FOMC will be
inflation.
My own impression is that the lack
of fiscal discipline
of recent years will ultimately feed a
substantial amount
of inflation, but it is not likely to appear so long as credit problems are accelerating.
These parcels have enjoyed — to varied degrees —
substantial unrealized appreciation from up - zoning, surrounding population growth, property improvements, construction and lease - out, and, in some instances, more than a decade
of market
inflation.
In recent years, the BoJ has purchased a
substantial volume
of yen to increase
inflation.
This is to ensure that a
substantial portion
of the dividend income is derived from energy stocks, which makes the fund less vulnerable to
inflation.
Substantial goods, service and asset
inflation is already being built into the system — its manifestation is really just a matter
of when, not if.
This research depicts that with a raising incidents
of lifestyle related diseases along with medical
inflation, a health plan with high sum insurance is on fairly
substantial demand in the market.
Then in May, the Fed said, «In contrast, over the same period, the probability
of an unwelcome
substantial fall in
inflation, though minor, exceeds that
of a pickup in
inflation from its already low level.»
Macroeconomic factors such as GDP, imports / exports,
inflation, and interest rates have a direct impact on real estate values — most noticeable when there is a
substantial change in any
of them — and appraisers must be able to interpret how these factors impact value.