Sentences with phrase «returns in a low interest rate»

To counter this the composition of the fixed income portfolio deviates from the aggregate index in order to increase the odds of generating positive real returns in a low interest rate environment.

Not surprising, really, because there are many people in that demographic who are looking for higher investment returns in a low interest rate environment.

Not exact matches

Private firms like Amur have proliferated in the past few years, which is hardly a surprise, given that Canada's stubbornly low interest rates have pushed investors into alternative asset classes, and residential real estate has generated stunning returns for investors and homeowners alike.

It achieves that by raising or lowering its policy interest rate, which influences other interest rates such as what you'll pay on your mortgage or auto loan, and the return you'll get on the balance in your savings account.

«There is an immediate expectation that as interest rates go up, investors can find greater return on capital by investing it in lower - risk portfolios.»

Over the past few years, public pensions including California Public Employee's Retirement System (CalPERs) and California State Teacher's Retirement System (Calstrs)-- the largest in the country by assets — have posting mediocre returns due to low interest rates and growing retirement obligations.

In general, it was the falling interest rates and lower equity returns that crushed this sector.

Elevated valuations, low volatility and secularly low interest rates are unlikely to be allies for robust financial market returns over the next five years,» the fund company cautioned in its report.

While at the beginning of 2011 trading in euro - dollar futures was still foreseeing a return to typical interest rates over the next few years, that view has given way to expectations that rates will remain low for a decade to come.

It's operating from a position of strength and in 2016 saw operating return on equity of 13.3 %, consistent with its performance over the decade despite historically low interest rates.

Record - low interest rates also have caused some big institutional investors to search for returns in the high - risk, high - reward world of venture capital.

We find historical comparisons less useful in a world of structurally lower interest rates — and believe it's important to rethink returns.

Retirees are facing problems very similar to the average pension fund: In addition to not having enough cash contributions to keep up with the costs of aging, their returns have been hurt by interest rates that have been too low for too long.

Returns from that era were boosted by a confluence of factors that are unlikely to come together again: declines in inflation and interest rates, strong global GDP, low corporate tax, and rapid growth in China.

Carry trade is a trading strategy that involves borrowing at a low interest rate and investing in an asset that provides a higher rate of return.

Low interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returLow interest rates have given a huge incentive to shift out of low - risk assets into stocks and corporate bonds in search of higher returlow - risk assets into stocks and corporate bonds in search of higher returns.

(unless of course, that interest rate is low enough that your money is best suited invested in the market where you can potentially get higher returns!)

The stock market opened way down, continuing last Friday's selloff, though it has climbed back since the open — implying the return of volatility — as skittish investors continue to fear the sequence I describe in this AM's WaPo: tight labor market, wage pressures, higher interest rates, inflation, lower profit margins.

The private sector often demands rates of return far greater than public sector borrowing costs, especially in the current low interest rate environment.

We continue to be in a very low interest rate environment, so it's important to really maximize your after - tax returns.

Indeed, shorter - duration, tax - free munis have a history of delivering positive returns even during economic downturns and in environments of rising and lowering interest rates.

In addition, based on the relatively unusual combination of overbought, overbullish conditions, inflation pressures, and the like, I once again staggered our put option strikes, which results in a lower «implied interest rate» earned on our hedges, in return for tighter protection in the event of an abrupt market sellofIn addition, based on the relatively unusual combination of overbought, overbullish conditions, inflation pressures, and the like, I once again staggered our put option strikes, which results in a lower «implied interest rate» earned on our hedges, in return for tighter protection in the event of an abrupt market sellofin a lower «implied interest rate» earned on our hedges, in return for tighter protection in the event of an abrupt market sellofin return for tighter protection in the event of an abrupt market sellofin the event of an abrupt market selloff.

«For 2012, in the face of a delevering zero - bound interest rate world, investors must lower return expectations,» Gross concludes.

In return for this lower rate, the borrower must accept the risk that the interest rate on the loan most likely will rise in the future, thereby increasing the number of monthly mortgage paymentIn return for this lower rate, the borrower must accept the risk that the interest rate on the loan most likely will rise in the future, thereby increasing the number of monthly mortgage paymentin the future, thereby increasing the number of monthly mortgage payments.

In fact, the sentiment is so heavily skewed towards deflation, low growth and low interest rates forever right now that an unexpected rise in inflation in the coming years could lead to great returns in commodities for a timIn fact, the sentiment is so heavily skewed towards deflation, low growth and low interest rates forever right now that an unexpected rise in inflation in the coming years could lead to great returns in commodities for a timin inflation in the coming years could lead to great returns in commodities for a timin the coming years could lead to great returns in commodities for a timin commodities for a time.

Not only does this represent a decrease in internal diversification, but with interest rates near all - time lows, the return outlook for government and agency debt is muted.

In other words, Buffett is saying that low interest rates signal low future returns for Berkshire.

Also, as noted, with the general level of interest rates relatively low, the incremental return from investing in lower credit looks more rewarding.

In this blog, we continue the analysis to see if there is a relationship between the magnitude of interest rate change and magnitude of active return of the low volatility index relative to the S&P Read more -LSB-...]

Unfortunately, the only cure for low returns in bonds is higher interest rates.

It's not just that future returns will be lower from current interest rate levels than they've been in the past; it's that volatility in bonds will be much higher from -LSB-...]

The lower levels of concern around short - term fluctuations in portfolio values may also reflect a growing sense of realism amongst investors and the fact that they are starting to swallow the pill of lower returns in this low - interest - rate environment,» he added.

The question arises - if indeed we experience a period of rising interest rates or low and stagnant interest rates in the years ahead, how could we position ourselves to achieve anything but similarly low returns?

These are helpful.You are right that market failures have hit elder popluation in heavy way in past decade or so, and on top of that the fed locks interest at artificial rate low, so if we did save like our wise elder and financial advisors told us to do, we now get about nothing at all in interest return on those life savings.

The current environment of low interest rates and elevated equity valuations has many investors in a tight spot, as return expectations are lower than usual for both bonds and domestic stocks.

The low interest rate environment may also have encouraged a shift in investments towards hedge funds as, in the past, hedge funds have achieved higher average returns than traditionally managed investments, albeit in exchange for greater risk.

Whereas in most markets an increase in short - selling puts pressure on the lending market and pushes up the interest rate at which short - sellers can borrow the underlying stock, the ready supply of gold loans from central banks seeking to earn some return on their gold holdings has, until recently, helped to keep lease rates low, generally in the range of 1 — 2 per cent (Graph B3).

With interest rates still hovering near the lowest levels they've ever been in 5,000 + years of recorded human history, it's very difficult to achieve a significant investment return without taking on substantial risk.

Therefore, artificially low interest rates subsidize investment in low - return opportunities at the expense of investment in high - return opportunities.

In the past few years, investors have taken this theory to heart, believing that perpetually slow economic growth, low interest rates and subpar investment returns are inevitable.

In low interest rate markets, like the past 10 - years, CDs are less enticing because returns are miniscule.

In my view, investors who view current valuations as «justified relative to interest rates» are really saying that a decade of zero total returns on stocks is perfectly adequate compensation for the risk of a 45 - 55 % market loss over the completion of the current market cycle - a decline that would historically be merely run - of - the - mill given current valuations, and that certainly can not be precluded by appealing to low interest rates.

Mixed with Maryland's scarcity of large parcels and access to a large population within a day's drive, it makes the state an attractive place for investors seeking steady returns higher than they can find in low - interest rate bonds.

This return is fantasy in this low - interest - rate environment and with an incredibly volatile stock market.

In this low interest rate environment, getting any kind of return on the fixed portion of a portfolio is quite difficult.

The decline to date in public debt charges of $ 1.4 billion (8.9 %) largely reflects lower average effective interest rates and lower inflation adjustments on Real Return Bonds.

All of this makes for a ripe time for the P2P investor to take advantage of the interest rate gap and help borrowers get a lower rate in the process, all the while generating a steady return on your P2P investment.

To compel the Fed to switch from its current «leaky floor» monetary control system, based on paying banks an above - market return on their excess reserves, to a more orthodox system in which the interest rate on excess reserves defines the lower bound of a fed funds rate «corridor,» all that's needed is a slight clarification of existing law.

While many people believe that growth in the years ahead will be lower than it has been in the past, we can also observe that cash per dollar of earnings has increased over the years for S&P 500 companies as returns on capital have increased, while the cost of capital has fallen with lower interest rates.

Does the currency carry trade, financing short - term deposits in currencies with high interest rates with short - term loans in currencies with low interest rates (or being long and short forward contracts in currencies with high and low interest rates) generate a reliably attractive return?