The good news is that by adding foreign stocks, investors have been able to offset
the pressure of rising interest rates on their other holdings.
Not exact matches
The 2.9 %
rise in December average hourly earnings «might put a little bit more
pressure on the Fed to accelerate the path [
of interest rate hikes], but I really don't think it's going to be that significant a push,» said Dan North, chief economist at Euler Hermes North America.
NEW YORK, Feb 5 - The dollar
rose against a basket
of currencies on Monday as the U.S. bond market selloff levelled off after the 10 - year yield hit a four - year peak on worries that the Federal Reserve might raise
interest rates faster to counter signs
of wage
pressure.
Wednesday's moves come after three volatile sessions in which fear
of rising inflation sent
interest rates higher,
pressuring equities.
This is because the province has accumulated a large public debt that given the prospects for an economic slowdown and / or
rising interest rates will potentially increase fiscal
pressure via debt service costs which in 2016 - 17 totaled $ 11.7 billion or just over 8 percent
of total government spending.
Could the economy have successfully negotiated the period
of robust growth, and
rising inflation, in the first half
of 2000, in the face
of strong downward
pressure on the exchange
rate, with
interest rates maintained at 4 3/4 per cent?
The second implication is that there likely will be upward
pressure on
interest rates as widening budget deficits for 2018 and 2019 will cause a larger supply
of U.S. Treasury securities to be issued to fund
rising U.S. budget deficits.
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.
There is also a plausible risk that China will retaliate by selling a portion
of its vast US treasury debt holdings, putting further upside
pressure on already
rising US
interest rates.
If inflation
pressures become bad enough to force excessive
rate hikes, what often follows is an inversion
of the yield curve — when the
interest rates on shorter - maturity bonds
rise above
rates on longer - maturity bonds.
Some
of the main downward price
pressures will continue to be the U.S. dollar's strength and
rising interest rates.»
Yet as the past few years have shown, predictions
of rising interest rates have consistently proved premature, largely due to a general absence
of inflationary
pressures, resulting in a dovish tilt to monetary policy among the main central banks.
Also, the need for
interest rates to
rise will be lessened to the extent that inflation expectations remain well anchored and wage
pressures in stronger parts
of the economy do not spill over to other parts.
Rising interest rates in the midst
of weak U.S. and global economies will put additional
pressure on the average American.
Yet
rising interest rates from the Federal Reserve have reduced the amount
of loan origination activity in some quarters, and that has the potential to put
pressure on companies that benefit from that activity.
When
interest rates rise due to a healthier economy, these defensive companies come under more
pressure because
of increased borrowing costs.
Due to significant deflationary
pressures and the
rise of interest rates in the United States over the last three years, TIPS ETFs have demonstrated negative returns in low single digits.
The U.S. Treasury bond and note futures markets this week have been under strong selling
pressure, amid notions
of a hike in U.S.
interest rates very soon, and amid
rising inflation.
Rising Global Equity Markets
Pressure Dollar Overnight Stronger global equity markets are contributing to the weakness in the Dollar as traders are once again increasing demand for more risky assets after reassessing U.S. economic data and the odds
of an
interest rate increase by the Federal Reserve.
Given
rising interest rates generally put
pressure on the bonds, and the topic has been concerning for some time now, the S&P 500 Bond Index has already been negative in 4
of the last 6 months.
What I predict is that
interest rates will
rise until about the end
of 2011, and then the house prices will start to come under
pressure - they're already under
pressure now, but people have borrowed so much, that high
interest rates, more will be forced to sell.
Treasuries, which are backed by the full faith and credit
of the U.S. government as to the timely payment
of principal and
interest, are considered the most stable fixed - income investment, and
rising Treasury yields, as occurred in early 2018, tend to put downward
pressure on munis.8 However, Treasuries are more sensitive to
interest rate changes, and stock market volatility makes both Treasuries and munis appealing to investors looking for stability.
Of course, if interest rates rose that much, the US Treasury's future deficits would balloon, and there would be a lot of political pressure to keep interest rates low if possibl
Of course, if
interest rates rose that much, the US Treasury's future deficits would balloon, and there would be a lot
of political pressure to keep interest rates low if possibl
of political
pressure to keep
interest rates low if possible.
If such narrowing spreads occur, seniors housing cap
rates may not experience the same magnitude
of upward
pressure that expected
rising interest rates could impose on other commercial property types.
If such narrowing spreads occur from today's 500 - basis point differential, seniors housing cap
rates may not experience the same magnitude
of upward
pressure that the expected
rising interest rates could impose on other commercial property types.
A declining housing market, coupled with
rising interest rates, was expected to put
pressure on heavily - leveraged Canadians, and therefore the lucrative lending businesses
of the country's biggest banks.
Those who chose to sit it out on the sidelines are now facing a market in transition, characterized by the threat
of rising interest rates, low inventory levels, and upward
pressure on housing values.»