Sentences with phrase «rising yield environment»

Yet even many of these stocks could generate positive returns in a gradually rising yield environment.
Yet even many of these stocks could generate positive returns in a gradually rising yield environment.

Not exact matches

The bank added that if high inflation expectations and the global growth environment continues, equities should hold up despite the rise in yields.
Instead the market environment over the past 24 hours has mimicked last week's pattern, with yields rising and stocks falling.
An environment of rising rates impacts the relative attractiveness of holding assets like gold because the metal provides no yield.
«In the current environment, although inflation appears to be increasing, it's still not likely to cause 10 - year yields to rise to levels that would be problematic for equities.
A flattening yield curve is often a feature of a rising rate environment and can spur worries about an economic slowdown.
Instead of yield at any price, investors wanted companies and assets that would do better in an environment of stable or rising growth.
To learn more about the high dividend yield factor in a rising interest rate environment, use the link below to download our paper, «Harvesting Equity Yield&rayield factor in a rising interest rate environment, use the link below to download our paper, «Harvesting Equity Yield&raYield».
I've long noted that the analysis of market action can help to overcome some of this frustration, as stocks have often provided good returns despite rich valuations so long as market internals were strong, and the environment was not yet characterized by a syndrome of overvalued, overbought, overbullish, and rising yield conditions.
But cash isn't such a bad thing in a rising rate environment as the yield pick up rather quickly on money market accounts or you can roll some of that over into higher yielding short - term bonds.
Cash yields are much lower today than they were back then so it's not exactly the same environment but if / when rates do eventually rise cash will actually be a decent holding.
A flattening yield curve is often a feature of a rising rate environment.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
The bottom line: In an environment of generally decent (albeit recently disappointing) growth and gently rising yields, high yield offers attractive potential in a yield - starved world.
These stocks generally offer competitive yield and upside potential through capital appreciation, and they have historically delivered attractive performance in rising rate environments relative to the highest yielding stocks.
High yield bonds have only been around since the 1980s, so they've never really experienced a sustained rising rate environment.
Stocks with a history of consistently growing their dividends have historically tended to perform well and exhibit less volatility in a rising rate environment, while high yielding dividends, often considered «bond - like proxies,» have tended to be more vulnerable (due to their high debt levels) and have historically followed bond performance when rates rise.
These should signal rising yields — but history may not be a great guide for us in this environment.
In this vein, JPMorgan recently published research indicating that 10 - year Treasury yields below 5 %, even in a rising interest rate environment, have historically correlated to rising stock prices.
On that occasion Australian bond yields rose significantly more than those in the US, reflecting market concerns that Australia would not be able to maintain control over inflation in an environment of strong global expansion.
As of last week, tax - exempt government bonds hit a four year high, with many investors believing that the recent tax reform and an expected rising interest environment will push bond pricing even higher, offering a very attractive economic option for yield starved investors — many of which in recent years have had to increase risk capital allocations to generate reasonable outcomes.
Bond values fall in a rising interest rate environment because investors sell bonds in favor of higher interest yielding bonds.
The celebration of diverse perspectives that was supposed to yield a secure environment of inclusion, mutual respect, and happy diversity has instead given rise to an anxious, politically obsessed environment in which civility is predicated on intellectual conformity.
At the same meeting, Norman Myers, a British environment consultant, presented preliminary calculations that rising sea levels and declining farm yields could turn more than 300 million people into «environmental refugees» within 40 years.
Given an environment of low and even negative yields, slow growth and potential signs of rising inflation, Russ...
Morgane Delledonne reviews the current market conditions and the ETF strategies that can be employed to improve portfolio outcomes, including; managing duration in a rising interest rate environment, achieving superior yields through quality screening and harvesting high option premiums, whilst dampening portfolio volatility.
But the yield offered by these companies may be considered less competitive in a rising interest rate environment.
While it is understandable that market participants are concerned about interest rate risk in a rising rate environment, it is interesting to note that the high yield bond sector stands out within the fixed income market with less rate sensitivity.
In our paper «A Case for Dividend Growth Strategies,» we compared dividend growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some extent.
This means the 52bp pick up in yield that one gets today would result in a lower total return later, as bond prices would decrease in a rising interest rate environment.
ZEOIX exists to help answer a simple question: how do we help investors manage today's low yield environment without setting them up for failure in tomorrow's rising rate one?
We remain negative on gold which we expect to struggle in an environment of rising real yields and the stronger US dollar.
But some things haven't changed — investors are still challenged by the seemingly never - ending search for yield in an environment of potential rising interest rates.
These stocks generally offer competitive yield and upside potential through capital appreciation, and they have historically delivered attractive performance in rising rate environments relative to the highest yielding stocks.
While I still believe U.S. yields are likely to rise modestly by year's end, last week's decline in yields is a reminder that we're in a «low - for - long» interest rate environment.
In rising rate environments, credit spreads tend to move in the opposite direction to interest rates and can potentially generate income to help offset some of the impact of rising U.S. Treasury yields.
To be sure, we still favor credit in a rising - rate environment as higher yields can help cushion price falls.
Cornerstone Value Fund Manager Brian Peery discusses the Fund's focus on high dividend - yielding stocks and why he doesn't believe a rising rate environment will affect companies» ability to maintain or increase dividends.
While the yield of the S&P Current 10 - Year Japan Sovereign Bond Index continued to hover around zero, the yields of U.S. Treasuries were trending higher this quarter on the back of the rising - interest - rate environment.
Historical analysis of municipal bond behavior relative to U.S. Treasuries in rising rate environments points to potential opportunity for attractive tax - exempt yields without the volatility commonly associated with Treasuries.
Given the rising interest rate environment as a result of stronger economic growth, they believe that, in the current market, positioning the fund along the intermediate portion of the yield curve provides investors less interest rate sensitivity than longer duration portfolios.
Hyman also suggested interest - rate hedged strategies like IGHG (investment grade) and HYHG (high yield) for the rising rate environment expected with Trump's pro-growth approach.
They can also be useful in a rising interest - rate environment, since their higher yields could help offset a decline in bond -LSB-...]
But McBride says most savers are smart to stay liquid in money market accounts: «In a rising - rate environment, you want the ability to reinvest on a regular basis» at higher yields.
For those who want higher - yielding bonds in rising rate environments, using short - term high - yield bonds could fulfill that purpose.
This pattern of relative performance may be linked to improved bank profitability in a high or rising interest rate environment and the desire of investors to own REITs for yield purposes in a falling or low rate environment.
We are prepared — and would find it encouraging — to see the broader bond market environment shift from one of fear and historically low yields to one of renewed growth and potentially rising interest rates.
The Fund's investments in shorter duration high - yield bonds and floating - rate loans may help provide investor portfolios» a level of protection in a rising - rate environment, as investments in the Fund's universe have typically performed with low correlation to traditional bond markets.
High - yield - bond funds (38 %) and multi-sector bond funds (29 %) are also favored strategies in a rising rate environment, the survey found.
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