Sentences with phrase «risk than inflation»
Jeffrey Gundlach, founder of DoubleLine, which has been the best performing bond fund so far this year, tells the FT's Dan McCrum that deflation is a greater risk than inflation because he believes it would take another crisis to trigger big monetary policy changes.
http://www.investmentpostcards.com/ Not exact matches
Outside of a military confrontation on the Korean peninsula, a big risk for the market in 2018 remains inflation rising quicker than expected, which could force the Fed to move faster than it presently intends to in the United States.
«Markets are coming to the conclusion that the U.S. economy is close to overheating and therefore that the risks of inflation are bigger than the risks of a recession,» Deutsche Bank economist Torsten Slok said, quoted by the Financial Times.
Powell in statements throughout the year, culminating with his recent Senate confirmation hearing, has been clear he sees little risk of inflation that would prompt the Fed to raise rates faster than expected, and takes weak wage growth as a sign that sidelined workers remain to be drawn into jobs.
If the Bank of Canada were to tolerate growth faster than that for too long, it would risk exceeding its inflation target.
And speaking of inflation, shouldn't the risk for CDs be scored less than 10 because you may lose money to inflation that may not be compensated for with the interest you receive?
debt obligations of the U.S. government that are issued at various intervals and with various maturities; revenue from these bonds is used to raise capital and / or refund outstanding debt; since Treasury securities are backed by the full faith and credit of the U.S. government, they are generally considered to be free from credit risk and thus typically carry lower yields than other securities; the interest paid by Treasuries is exempt from state and local tax, but is subject to federal taxes and may be subject to the federal Alternative Minimum Tax (AMT); U.S. Treasury securities include Treasury bills, Treasury notes, Treasury bonds, zero - coupon bonds, Treasury Inflation Protected Securities (TIPS), and Treasury Auctions
The currency would then be fairly priced, the expected volatility very low and unbiased, and investors would require nothing more than the risk - free cost of capital (assuming, of course, that expected inflation is positive).
Under certain conditions, as long as monetary policy has a larger effect on inflation than it does on financial stability risk and macroprudential policy has a larger effect on financial stability risk than it does on inflation, there would be no need, in theory, for the agencies responsible to coordinate their actions explicitly.
Asset prices are in fact much more sensitive to monetary policy than either the economy or inflation are, with the incumbent risk of fueling market bubbles.
World growth will remain low on average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better than expected, even though the four - year old cyclical bull market is long by historical standards.
«He's been very clear that he thinks the risks on the jobs side are far greater right now than the risks on the inflation side and that policy should follow that obvious state of affairs.»
With core inflation at 1.8 %, it is likely that inflation achieves a «two - handle» (2 %) soon, and rather than risk falling behind the curve, the Fed...
Comparing our opportunity to Japan's, isn't our sovereign credit risk much higher than Japan's in terms of per capita GDP growth, structural balance - of - payments deficit, history of default and history of inflation?
Indeed in the presence of chronic excess supply structural reform has the risk of spurring disinflation rather than the contributing to a necessary increase in inflation.
Her past comments on inflation aren't explosive, but they're enough for skeptical senators to conclude, correctly, that she's more worried about unemployment and less worried about inflation risks than recent chairs.
Conservatively positioned, income - oriented retirees tend to be more exposed to inflation risk than more aggressively positioned young workers.
And for all the muddle, the one thing that seems clear is that the risks to the economy and particularly the labor market — which is generating solid job growth and even some wage gains (for which we should all give Chair Yellen and the Fed serious credit)-- remain «asymmetric:» there's a greater risk of needlessly slowing non-inflationary growth than there is of inflation accelerating.
I hope it will also emphasize the two sided character of the 2 percent inflation target to mitigate the risk that markets will think the US has an inflation ceiling rather than target.
-LSB-...] shows why inflation is a bigger risk than an increase in interest rates to long maturity bond holders.
I hope it will also emphasize the two sided character of the 2 percent inflation target to mitigate the risk that markets will think the U.S. has an inflation ceiling rather than target.
Rather than stressing vigilance about future inflationary risks, Fed policymakers re-iterated their view that core inflation was likely to rise only gradually, eventually stabilizing around their 2 % target level.
The risk of a more substantial and sustained pick - up in inflation would be heightened if the economy were to expand significantly more quickly than currently envisaged.
One risk, sources say, is that the U.S. economy may grow faster than expected, which would likely cause inflation to surge.
As usual, I don't place too much emphasis on this sort of forecast, but to the extent that I make any comments at all about the outlook for 2006, the bottom line is this: 1) we can't rule out modest potential for stock appreciation, which would require the maintenance or expansion of already high price / peak earnings multiples; 2) we also should recognize an uncomfortably large potential for market losses, particularly given that the current bull market has now outlived the median and average bull, yet at higher valuations than most bulls have achieved, a flat yield curve with rising interest rate pressures, an extended period of internal divergence as measured by breadth and other market action, and complacency at best and excessive bullishness at worst, as measured by various sentiment indicators; 3) there is a moderate but still not compelling risk of an oncoming recession, which would become more of a factor if we observe a substantial widening of credit spreads and weakness in the ISM Purchasing Managers Index in the months ahead, and; 4) there remains substantial potential for U.S. dollar weakness coupled with «unexpectedly» persistent inflation pressures, particularly if we do observe economic weakness.
The balance of risks around the central forecast appears at present to be such that it is more likely that inflation will exceed the forecast, and therefore exceed the target, than that it will fall below it.
This could include setting targets for nominal GDP growth rather than inflation, investing in a wider range of risk assets, making plans to allow base rates to turn negative, and underscoring the importance of avoiding a new recession.
Investing in currency involves additional special risks such as credit, interest rate fluctuations, derivative investment risk, and domestic and foreign inflation rates, which can be volatile and may be less liquid than other securities and more sensitive to the effect of varied economic conditions.
In my opinion, higher inflation is a much bigger risk than rising interest rates when it comes to bond performance.
Higher - than - expected inflation is also a potential risk for emerging markets where central banks have less sophisticated policy tools than the Fed for combatting higher inflation.
Stating that the risk of a substantial fall in inflation was greater than the risk of a substantial rise, the Fed lowered the federal funds rate by 25 basis points to 1 per cent in June.
We do not see deflationary conditions in the United States; in fact, we see more risks of inflation moving higher than lower.
The biggest risk is that inflation will be lower than this — a risk that would be exacerbated by tightening policy.
Given this healthy economic backdrop, the risk is whether inflation starts to heats up faster than the Fed projects.
While the central forecast for underlying inflation remains similar to that provided in February, the risks around this outlook now appear more evenly balanced, rather than on the upside as indicated in previous Statements.
Improved risk sentiment failed to deter the yen on Thursday, as its rally against the dollar deepened in the wake of stronger than expected U.S. inflation...
If you put your money in a FDIC - insured savings account with less than 3 % interest a year, there is 0 risk, but then your money doesn't keep up with inflation.
The New Zealand dollar continued to fall on Tuesday underpinned by weak risk sentiment and a poorer than forecast Inflation Expectation release.
«While the recent downtick in growth coupled with the uptick in various inflation indicators from wages to commodity prices, has been relatively modest, investors are now more open to the risk of stagflation than previously,» he said.
For fear of risk, if one avoids equities or equity funds (or investments which can beat inflation + taxes) then not investing sufficiently in these options can be more riskier (risk of wealth erosion) than actually investing.
This fund may be attractive to investors who are looking to at least beat inflation while taking less risk than the broader market.
Inflation — Another risk is that inflation will grow faster than our savings and therefore the buying power of our savings will decrease, meaning our future savings will buy less thInflation — Another risk is that inflation will grow faster than our savings and therefore the buying power of our savings will decrease, meaning our future savings will buy less thinflation will grow faster than our savings and therefore the buying power of our savings will decrease, meaning our future savings will buy less than today.
These types of bonds usually mature in less than 2 years, which partially protects against inflation risk.
Voting against the action were Richard W. Fisher, who believed that, while the Committee should be patient in beginning to normalize monetary policy, improvement in the U.S. economic performance since October has moved forward, further than the majority of the Committee envisions, the date when it will likely be appropriate to increase the federal funds rate; Narayana Kocherlakota, who believed that the Committee's decision, in the context of ongoing low inflation and falling market - based measures of longer - term inflation expectations, created undue downside risk to the credibility of the 2 percent inflation target; and Charles I. Plosser, who believed that the statement should not stress the importance of the passage of time as a key element of its forward guidance and, given the improvement in economic conditions, should not emphasize the consistency of the current forward guidance with previous statements.
@DJClayworth - If the horizon for the car fund is a couple years out, and the risk of inflation is scarier than the risk of loss of principal, some of the ultrashort bond funds may make sense.
«I prefer to have inflation rather than risk losing money in the market,» Ernst says.
Higher - than - expected inflation is also a potential risk for emerging markets where central banks have less sophisticated policy tools than the Fed for combatting higher inflation.
With Euro - zone debt fears reamining, rather than fading... with China inflation concerns lingering, not dissipating... 3 of the 4 key risk gauges are now elevated.
For sure you have to understand the risks involved but you can certainly do better and increase your portfolio faster than inflation as well.
Stocks in the past have had significantly higher return overall than inflation protected bonds but have higher risk as well.