Sentences with phrase «rich valuations»

Historically, «cyclical» market fluctuations have occurred in the context of much longer transitions from extremely rich valuations to extremely depressed valuations.

We're often asked «What's the alternative» to stocks, despite extraordinarily rich valuations on a broad variety of historically reliable metrics.

Stocks have done well and are at rich valuations not because they are appropriately priced, not because they deserve these valuations, but rather because investors have been in a speculative mood.

But while rich valuations make lower long - run returns and a severe market decline more likely, they aren't a sell signal.

This highlights rich valuations, which contribute to our «up - in - quality» preference in credit.

Even if good growth is ahead, your stomach may not be able handle the ups and downs that come with owning a company that has such rich valuations.

The answer is a qualified «yes» — the qualification being that current rich valuations will still produce dismal returns for stocks.

Along with falling yields, investors who want to buy income - producing stocks these days are facing rich valuations.

While the blue valuation line showed relatively rich valuations, actual market returns over the next 6 years were even worse than expected.

Low - volatility strategies, already operating from a baseline of low projected returns due to their currently rich valuations, are particularly vulnerable to the impact of trading costs.

But regardless of the answer, recognize that extremely rich valuations will still be associated with dismal long - term expected returns.

This highlights rich valuations, which contribute to our «up - in - quality» preference in credit.

Be Mindful of Rich Valuations in Low - Volatility Stocks.

We've now observed a dot - com bubble, a techology bubble, a general bubble in equities ending in 2000 but «echoing» to rich valuations in recent years (especially on the basis of normalized profit margins), a bubble in housing, a bubble in private equity and low - grade debt, a mini-bubble in Shanghai (which has lost about half its value in recent months), and now a bubble in commodities that is well underway.

Within credit we prefer up - in - quality exposures and favor the U.S. over Europe, where richer valuations mean lower income potential and higher sensitivity to interest rates.

Arnott, Beck, and Kalesnik (2016a, b) and Arnott et al. (2016) empirically demonstrate that strategies with rich valuations tend to provide poor subsequent performance.

That's not a «bearish call» on precious metals shares, but does reflect somewhat richer valuations for precious metals than we saw a few weeks ago when those stocks were declining notably.

This despite the fact that the 2007 peak reflected rich valuation multiples against earnings that were themselves inflated by abnormally elevated profit margins.

They've bid up CP's stock above $ 120 a share; most sell - side analysts have Neutral or Sell ratings on the stock, but that primarily reflects concerns about whether Harrison can deliver results justifying the stock's already rich valuations.

The blistering consensus: that in shopping itself at far too rich a valuation and pretending to be more than it was, Wired Ventures fell victim to its own greed and famous arrogance.

The considerations behind shifts in these market return / risk profiles should be clear - the strongest profiles emerge when a significant retreat in valuations is coupled with an early improvement in market internals; the weakest profiles emerge when overvalued, overbought, overbullish conditions develop or when rich valuations are joined by broadening divergence or deterioration in market internals.

Don't low interest rates justify rich valuations?

Are rich valuations enough to stop the speculation?

With regard to the current market cycle, the period since 2000 has been unique in that it has reflected an environment of persistently rich valuations.

In many instances, this has caused traditional treasuries to rally near the top end of their 52 - week highs and may indicate a greater risk of rich valuations fighting with waning momentum.

Put simply, when valuation measures are steeply elevated but investors remain inclined to speculate, as evidenced by very broad uniformity of market action and the absence of internal divergences, rich valuations often have little effect on market outcomes.

DUBAI, May 1 - Saudi stocks slid 0.6 percent on Tuesday as concerns grew about rich valuations for blue - chip stocks after the region's biggest stock market hit a more than a two - year high last week.

Rich valuations leave less room for markets to absorb an adverse event, and, thus, a notable pullback in risk assets seems plausible over the course of the coming year.

As of last week, the Market Climate for stocks remained in the most negative 0.5 % of all historical observations, and was characterized by rich valuations, unfavorable market action, and a variety of hostile «Aunt Minnies» that are associated with poor subsequent returns.

Even if we observe rich valuations, there can be some justification for accepting market risk during periods when market internals are uniformly strong, provided that the environment is not also characterized by a syndrome of overbought, overbullish and rising - interest rate conditions.

Both scatterplots show negative slope: richer valuations generally imply lower subsequent returns, while cheaper valuations imply higher subsequent returns.

Typically, when stocks trade at very rich valuations, a slight misstep in a quarter can lead to a dramatic sell - off.

Even at historically rich valuations, Hong Kong's office market is extremely active while investors in the retail market are waiting for clearer signs of a turnaround before committing.

Even athistorically rich valuations, Hong Kong's offi ce market is extremely active while investors in the retail marketare waiting for clearer signs of a turnaround beforecommitting.

Longer - term, the market's rich valuations on a variety of internals is already enough to anticipate fairly unsatisfactory returns for buy - and - hold investors in the major indices over the coming 5 - 7 years.

As I emphasized last week, even if we had no concern at all about a second wave of credit strains, we would still be fully hedged here based on the present combination of rich valuations, overbought conditions, overbullish sentiment, and hostile yield pressures.

The S&P 500 has lost ground, on average, at points in recent years where rich valuations were paired with unfavorable internals.

All three boast extremely rich valuations.

The main reason high prices foretell paltry gains is that rich valuations make dividend yields smaller.

I won't feel like I missed out: Long - run returns — at least in the U.S. — are unlikely to be impressive for today's buyers, because we are starting from such rich valuations.

But even during post-credit crisis periods, some combinations of market conditions have warranted at least a moderate speculative exposure to market fluctuations despite rich valuations.

One example, from a Dow Theory perspective, is to note the classic divergence or «non-confirmation» here — a high in the Industrials with the Transports lagging, coupled with rich valuations and lopsided bullish sentiment.

After pricing its IPO at $ 17 a share, the owner of the popular disappearing - message app has a market value of roughly $ 24 billion, more than double the size of rival Twitter (twtr) and the richest valuation in a U.S. tech IPO since Facebook (fb) five years ago.

The selloff should prompt investors to carefully reconsider the bull market's rich valuations.

The corollary to this level of rich valuation is that our projection for 10 - year total returns for the S&P 500 is now just 5.3 % annually.

When you look back on this moment in history, remember that rich valuations had not only been associated with low subsequent market returns, but also with magnified risk of deep interim price losses over shorter horizons.