Sentences with phrase «rise in interest rates during»

The simplified explanation for this aberrant investing disaster was a dramatic rise in interest rates during the period: Rates on long - term government bonds went from 4 % at year - end 1964 to more than 15 % in 1981.

Not exact matches

After the U.S. experience during the Great Depression, and after inflation and rising interest rates in the 1970s and disinflation and falling interest rates in the 1980s, I thought the fallacy of identifying tight money with high interest rates and easy money with low interest rates was dead.

Only a year ago, during the height of the rising interest - rate fears tied to Fed tapering, investors were exiting bond funds in droves.

The biggest disadvantage of buying a Treasury bond is that the interest rate could rise during its term, which means your money might be tied up in an investment that pays 2.75 percent interest when you could be getting 4 percent or 5 percent — or more.

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.

This probably occurred because the big wage increases in 2010 - 11, which were counterbalanced by the sharp drop in real interest rates during that period, were finally able to take effect in 2012 when real interest rates rose sharply once again.

Typically in rising rate environment, stocks have historically outperformed traditional bonds.1 The Fed will generally raise interest rates to cool a growing economy and stocks usually continue to appreciate during this time.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

With a combination of these diversified strategies, a flexible active approach aims to find fixed income return opportunities in all corners of the market, even during times of greater volatility or rising interest rates.

Investments in mortgage - backed securities are subject to prepayment risk, which can limit the potential for gain during a declining interest rate environment and increase the potential for loss in a rising interest rate environment.

Let's take a look at some of the key fundamentals that have kept gold prices on a tight leash during the last few years against the backdrop of a sharp correction in the equities markets, rising inflation, geopolitical unrest and the likely end of an era of low interest rates.

During the past few months, economic data, both in the United States and overseas, has been stronger than most market observers were expecting several months ago, especially given the fact that interest rates have risen.

Citi wants to adjust its new - cardholder strategy as interest rates rise, including «shortening or eliminating the promotional period on certain offers,» Joseph Gerspach, the company's chief financial officer, said during Citi's fourth - quarter earnings call in December.

Equally important, even during extended speculative periods as we observed in the late - 1990's, those advances have tended to suffer deep and abrupt intermediate - term corrections once elevated valuations are joined by overbought conditions, overbullish sentiment, and rising interest rates, as we observe today.

Essentially no net gains, on average, have occurred during periods of strong international agreement in the form of either rising long - term interest rates or rising central bank rates.

Even if you have a fixed - rate mortgage loan — in which your interest rate remains the same during the life of your mortgage — your monthly payment could rise depending on your property taxes.

By keying in on large - cap sectors and stocks that have shown a strong tendency to move up or down with interest rates, investors can potentially outperform traditional U.S. large - cap equity indexes during periods of rising rates.

However, of even greater interest to me was the continued rise in interest rates, which accelerated during February.

The largest underperformance was seen during the technology boom in the late 90s as interest rates rose by over 2 %.

The FIG rose strongly during the second half of 1993, forecasting the steep slope of interest rate increases in 1994.

With these plans, it's important to note that payment caps can result in negative amortization during periods of rising interest rates.

Typically in rising rate environment, stocks have historically outperformed traditional bonds.1 The Fed will generally raise interest rates to cool a growing economy and stocks usually continue to appreciate during this time.

While the prime has dropped in most cases by the same amount as the Bank of Canada rate in the last year or so, other interest rates in the market have been rising and loans have been harder to get as the banks avoid riskier lending during a recession.

Fixed income securities are subject to increased loss of principal during periods of rising interest rates and may be subject to various other risks, including changes in credit quality, liquidity, prepayments, and other factors.

A bump - up CD or bump - rate CD is one in which you have the option to «bump up» to a newer, higher interest rate if rates rise during the term of your CD.

What a «normalized» interest - rate environment looks like is up for some debate, but consider that many investors in today's market have never made portfolio allocations during an extended period of rising interest rates.

In addition, debt instruments entail interest rate risk (as interest rates rise, prices usually fall), therefore the Fund's share price may decline during rising rates.

In contrast to popular belief, equities underperform during periods of rising inflation as rising interest rates cause the net present value of future cash flows to decrease (though equities do fair better than bonds).

This type of mortgage is good for people who are not planning to live in the home during the adjustable interest rate period or who plan to refinance the mortgage before the interest rate begins to rise.

Recent performance, however, has been in contrast to earlier periods when REIT share prices generally performed quite well during periods of rising interest rates.

Investors should also consider unconstrained strategies in global bond markets, we believe, as a way to increase the opportunity set and protect capital during a period of rising interest rates.

Because the funds invest in short - term interest bearing securities on a constant basis, during rising interest rate environments they are able to achieve higher interest rates much more quickly than more conservative savings instruments, like savings accounts or certificates of deposit.

Investments in asset backed and mortgage backed securities are subject to prepayment risk which can limit the potential for gain during a declining interest rate environment and increases the potential for loss in a rising interest rate environment.

This will make a bigger difference during periods of falling interest rates when bond prices will rise in the secondary market.

This could mean that during periods of rising interest rates, universal life insurance policy holders may see their cash values increase at a rapid rate compared to those in whole life insurance policies.

Mr. Trauberman commented: «During the recent rise in interest rates, we were able to utilize a creative structure to forward lock the interest rate on the loan.

«Although interest rates rose sharply during the fourth quarter, our data show no signs of a home price slowdown,» said Andrew Leventis, FHFA deputy chief economist, in a statement.

Based on these facts, we know that residential mortgage interest rates may continue to rise during in 2017.

Behind the affordable conditions are low interest rates, which today are below 5 percent, and home prices that, while rising in some areas (like booming North Dakota), remain quite a bit below their peak during the housing boom.

Significantly, of the 65 per cent with fixed rates, 12 per cent locked in from a variable rate during the past 12 months and a further 10 per cent had locked in more than a year ago in anticipation of rising interest rates, says the association.

Lower interest rates and a slight rise (0.7 percent) in the national family median income ($ 64,751) led to improved buying power in a majority of metro areas during the second quarter.