Ian Sexsmith, portfolio manager at Parnassus Investments, says banks» prices don't reflect the potential impact of more consumer lending and lower default
rates in a strong economy — a mismatch that's creating some enticing bargains.
Not exact matches
«Why shouldn't we look at
strong dividend players, levered to the
economy,
in sound and important businesses that pay above market
rate yields?»
Despite the
strong overall report card on the health of the
economy, financial markets have weakened modestly
in the wake of the GDP release, perhaps reflecting disappointment that the GDP growth
rate was not even quicker.
Also,
in general, a
stronger economy leads to a higher interest
rates, with or without Fed involvement.
As it stands, the fundamentals underpinning housing markets
in Vancouver and Toronto remain
strong — local
economies are growing, immigration is robust and interest
rates are low.
In fact, currency markets now are helping the central bank in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profit
In fact, currency markets now are helping the central bank
in that regard, since a stronger currency essentially has the same effect on the economy as higher interest rates because it will reduce exports and corporate profit
in that regard, since a
stronger currency essentially has the same effect on the
economy as higher interest
rates because it will reduce exports and corporate profits.
Moody's decision to leave the government's
rating in investment grade reflects the underlying strength of the Spanish
economy and the government's clear desire to reverse the debt trajectory through a
strong fiscal consolidation programme.
Of course, rock - bottom
rates and a
strong Canadian dollar, he added, are the opposite of what the Canadian
economy needs right now
in order to kick its current addiction to household debt and condos and switch to a more sustainable growth model fuelled by exports and business investment.
However, he says there's good reason to think Canada can manage the risks from debt, which he says is a natural consequence of several factors, including the combination of a
strong demand for housing and the prolonged period of low interest
rates maintained
in recent years to stimulate the
economy.
Meanwhile, with a series of supportive economic factors at play «we expect the country's real estate market to continue the
strong showing it posted
in the second half of 2013,» Soper said, noting among other things favourable interest
rates and an improving U.S.
economy fuelling demand for Canadian exports.
Job creation tumbled
in May, with the
economy adding just 38,000 positions, casting doubt on hopes for a
stronger economic recovery as well as a Fed
rate hike this summer.
Trudeau's Liberal Party under a former leader swept to power
in 1993 and won three subsequent elections — all of them while interest
rates were stable or falling and the
economy was relatively
strong.
The
strong expansion projected for the global
economy in 2018 and 2019 includes growth by the advanced
economies of 2.5 % this year, easing back to the 2017
rate of 2.2 %
in 2019.
This renewed crisis
in the Eurozone comes at a time when the European
economies appear to be slowing down after a
strong first quarter, and despite this, policy interest
rate increases by the ECB are expected
in the coming months.
Given these positive surprises, and because monetary policy must be forward - looking to achieve our inflation target, Governing Council's discussions focused on three main issues: first, the extent to which recent strength is signalling
stronger economic momentum
in Canada and globally; second, how heightened levels of uncertainty, particularly about US tax and trade policies, should be incorporated
in our outlook; and third, how much excess capacity the
economy currently has, and the growth
rate of potential output going forward.
This is because higher inflows will cause adjustments
in the
economy — potentially including lower credit card
rates, a
stronger dollar, weaker lending standards, higher unemployment and surging asset markets» - Could you please provide us the explanation of a rising unemployment
in the US
in the case of a
stronger US$?
This number can be volatile, but a more robust Consumer Confidence Survey result suggests the
economy is
strong enough to withstand a hike
in interest
rates.
Economists forecast that the
economy added a solid 180,000 net new jobs last month, down from a
strong 255,000 gain
in July, and that the unemployment
rate will tick down to 4.8 %.
Trump delays metal tariffs on EU, Mexico and Canada: Reuters Special Counsel Mueller has far - ranging questions for Trump: NY Times US consumer spending and price inflation picked up
in March: Reuters Pending homes sales
in March for US point to subdued growth: CNBC Dallas Fed Mfg Index: mfg activity rebounded «strongly»
in April: Dallas Fed Chicago PMI edges up
in Apr, remains relatively subdued vs. recent history: MW Fed expected to hold
rates steady this week and raise
rates in June: Reuters Rising gas prices on track to deliver most expensive driving season since 2014: AP Initial Q2 GDPNow estimate for US
economy is a
strong 4.1 %: Atlanta Fed US Treasury
in Q1: 2018 borrowed the most since 2008: Bloomberg
The Commerce Department reported on Thursday that the
economy grew by 3.2 percent
in the final quarter of 2013, echoing the even
stronger 4.1 percent pace of expansion
in the summer months and providing the White House with a rare bit of good news despite dismal public approval
ratings.
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 signs of weakness that were seized upon were anomalies; the underlying
economy remained very
strong, incipient inflationary pressures were starting to appear, and during this period our interest
rates were raised, as it turned out, more or less by the same amount as those
in the United States.
This will benefit taxpayers through lower debt - servicing costs and will help Canada maintain its
strong triple - A credit
rating in an uncertain
economy.
Quebec's
economy grew 3.1 per cent
in 2017, the
strongest pace for that province since 2000 and twice its
rate of growth
in 2016.
This economic impact works
in opposition to the interest
rate risk they face: rising
rates, which are bad for bonds generally, usually accompany a
strong economy, which is good for high - yield bonds; falling
rates, which are good for bonds overall, usually accompany a weak
economy, which is bad for high - yield bonds.
North American
economies have been characterized by stable interest
rates,
strong employment levels and higher incomes, which have offset the weakness
in the housing and auto sectors.
The expanding national economic growth
in countries as China and India profit with the economic growth because they are the only sizeable
strong and stable
economies projected to record over 5 % growth
rates in 2009.
The benefits of a
strong economy are more important than the negative impact from modest increases
in interest
rates.»
A
strong rise
in inflation from healthy growth could force the Federal Reserve to raise US interest
rates aggressively
in an effort to prevent the
economy from overheating.
US Federal Reserve Moves Toward Gradual Policy Normalization The Federal Reserve is facing an extremely delicate task, but it is still our belief that the US
economy remains sufficiently
strong to be able to bear a gradual increase
in short - term
rates in the coming months.
Although Fed officials took
strong steps early
in the year, including cutting the central bank's benchmark interest
rate by more than half during the first four months, it took until the fall for them to realize that the
economy had fallen into a severe recession.
Following the release of National Accounts data, however, which were a good deal
stronger than expected and prompted many analysts to conclude that their earlier assessments of a slowing
in the
economy had been overstated, the exchange
rate moved higher against all currencies.
Nonetheless, while the Fed is facing an extremely delicate task — and the job of effectively communicating its intentions will be even more delicate — it is still our belief that the US
economy remains sufficiently
strong to be able to bear a gradual increase
in short - term
rates in the coming months.
A major turnaround
in Quebec is expected to see the provincial
economy grow 2.8 per cent
in 2017 — its
strongest rate in 15 years.
So, if the
economy is
strong and inflation is picking up, then a rise
in interest
rates will not cause prices to drop.
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.
That could
in theory help stock markets, which are generally boosted by lower
rates, though investors will be weighing that against the evidence that the underlying
economy is not as
strong as hoped.
The pickup was spread across the currency area, with sales up 1.5 %
in low - unemployment Germany, but up an even
stronger 2.1 %
in France, where the unemployment
rate is much higher and the
economy weaker.
Poloz said debt is a natural consequence of several factors, including the combination of a
strong demand for housing and the prolonged period of low interest
rates maintained
in recent years to stimulate the
economy.
A high
rate of growth
in spending by households has been an important factor sustaining the
strong performance of the Australian
economy.
In contrast, inflation in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressure
In contrast, inflation
in the domestically oriented sectors of the economy has continued at a higher rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth in costs and strong domestic demand pressure
in the domestically oriented sectors of the
economy has continued at a higher
rate, with the non-traded component of the CPI increasing by around 4 per cent over the latest year, reflecting ongoing growth
in costs and strong domestic demand pressure
in costs and
strong domestic demand pressures.
The main contributors remain the same: declining oil and commodity prices, renewed concerns over the pace of expansion
in China, and the impact of rising interest
rates and a
strong dollar on the U.S.
economy.
In essence, the argument goes, rising
rates didn't cause the value rebound, they were merely an effect of a
stronger economy and building inflationary pressures, themselves the primary catalysts for value.
Last week, New York Federal Reserve President William Dudley said the U.S.
economy could be
strong enough to warrant an interest
rate increase
in June or July, reinforcing the drum beat from within the Fed
in recent days that
rate increases are coming soon.
There is also the prospect of price loss as the Federal Reserve (Fed) has started raising its benchmark lending
rate amid a
stronger U.S.
economy (a bond's yield moves
in the opposite direction of its price).
Minutes of the Jan. 30 - 31 Federal Open Market Committee meeting showed that officials saw a
stronger economy than at the end of 2017 and that more
rate increases were
in the offing.
The average savings
rate for Americans is lower when the
economy is
strong, and then increases
in tougher economic times.
Northwest homeowners receiving bills
in developed areas such as Arlington Heights likely will notice the impact of slightly lower
rates and municipalities benefiting from a
strong economy.
We heard the current President on why we are graduate unemployment
rate continue to increase, his change of position on galamsey mining
in the country, the senior minister's statement that the fundamentals of the
economy is
strong, praises showered on the former communication minister and his team by the current communication minister, attempts to touch the heritage fund.
By contrast, Mr Blair said, «this chancellor has produced the
strongest economy, the lowest interest
rates, the lowest unemployment, the highest employment
in this country».