Obviously, a 147 % increase in the broad money supply since 2008 is quite a lot and it has had far - reaching effects,
particularly on asset prices.
Not exact matches
Atlanta Fed President Lockhart says keeping a close eye
on asset prices as they are
particularly buoyant at the moment; need to watch valuations
One factor supporting the Australian dollar over the past couple of years has been that interest rates right across the yield curve in Australia, and perceived returns
on other
assets, have been higher than those in a number of other countries,
particularly those which experienced a recession and a collapse of share
prices in the early part of this decade.
Now, if market participants were to shift to a passive approach in the practice of
asset allocation more broadly — that is, if they were to resolve to hold cash, fixed income, and equity from around the globe in relative proportion to the total supplies outstanding — then we would expect to see a similarly positive impact
on the market's absolute
pricing mechanism,
particularly as unskilled participants choose to take passive approaches with respect to those
asset classes in lieu of attempts to «time» them.
Large index ETFs, which have real - time net
asset values (NAVs), have not helped this
pricing problem in fixed income but, in parts of the fixed income market where there is less liquidity (such as high yield bonds), sourcing issues can be more difficult —
particularly in a market sell - off where buyers may not be readily available with sufficient capacity to take
on bond inventory.
The EMH, and more
particularly the Capital
Asset Pricing Model with which it is associated, also underpin the Black - Scholes options pricing model, variants on which have been used to value and hedge options positions in all markets since its invention i
Pricing Model with which it is associated, also underpin the Black - Scholes options
pricing model, variants on which have been used to value and hedge options positions in all markets since its invention i
pricing model, variants
on which have been used to value and hedge options positions in all markets since its invention in 1973.
ii) Corporate Stupidity: Focusing
on long - term
asset values,
particularly in this lower oil
price environment, assumes corporate execs.
Many remain bullish
on virtual
assets,
particularly bitcoin, and suggest it could reach new
price highs by the summer of 2018.
Futures are also used in portfolios to balance out
price fluctuations
on investments, where the underlying
asset is
particularly volatile.