Sentences with phrase «same as the bond»

You won't see a rise in the value of your holdings with cash during a recession and if you're keeping it in fixed term accounts then it will be adversely affected by rate rises, same as bonds.

A couple of points to note: despite the name, the Claymore Laddered Bond ETFs are not quite the same as a bond ladder an investor could construct herself because unlike a ladder, the investor has no control over reinvesting maturing bonds in the ETF.

Not exact matches

This is a bonding chemical, ergo it nudges us to think we're on the same side as the person we touch.

Peter Chiappinelli, a member of the asset allocation team at GMO, points out that bonds moving in the same downward direction as stocks «has happened before and will happen again.

More from Balancing Priorities: What to do with your bond portfolio as Fed rates rise Credit scores are set to rise Don't make these money mistakes when you're just starting out «There is no sense in bearing the risk of an adjustable rate when you can lock in a fixed rate at essentially the same level,» he said.

«As we saw in the»70s and»80s, there are times when stocks and bonds can have a positive correlation,» he said, meaning those assets can move in the same direction.

Being short, especially at record prices on bonds, doesn't have the same danger as being long.

People who observe your branded elements should feel as if they're part of a community, that they have a shared bond with others in the same situation.

«The market is fragmented and inefficient, and traditional indexes are poorly designed,» he said, but he added that higher - fee active bond funds run into the same problem as active equity funds.

A hundred small funds offering daily liquidity and buying bonds indiscriminately would be roughly as bad as five big funds doing the same thing.

Stay the course and keep buying VTSAX on the cheap and at the same time adjust your asset allocation slowly into bonds as you get older.

[3] And eight well - functioning, modest - sized, local bond markets amount to the same thing as a «regional market» for most practical purposes.

You're still dealing with all of the same bond risks as every other investor when you buy individual bonds — interest rate risk, credit risk, inflation risk, duration risk, default risk, etc..

I thought that you were treating the equity premium as the premium (if it exists) between equity shares sold by a firm and bonds sold by the same firm.

See also: There's no such thing as precision in the markets & How often do stocks and bonds decline at the same time

Appetite for riskier assets such as stocks and high - yield bonds has been suppressed by a number of factors that have come up around the same time, but the headwinds may be transitory, according to the New York - based investment bank.

The economics may be the same as QE; as Mr Krugman notes, coins, like bonds, are liabilities of the central government.

As discussed in our post, «How New Constructs» Discounted Cash Flow Model Works,» stock valuations and bond valuations can be understood in the same way.

A DMF invests primarily in investment - grade municipal bonds whose maturities are roughly the same as the end date of the fund itself.

The goal of yield maintenance is to allow the conduit lender to reinvest the money returned from the borrower, plus a penalty fee, into bonds or other investments and receive the same cash flow as if the loan hadn't been paid off early.

The key take away of Figure 1 is that one can value a stock in the same way one values a bond as long as one is flexible with the length of the forecast period in the DCF model.

Whether the profit from the sale of a bond in the fund is taxed at ordinary income tax rates or is eligible for a reduced capital gains rate is dependent on the same factors as explained above.

As to the GDF, the same Plan Description advised Sulyma that the asset mix of the GDF included «domestic and international equity, global bond and short - term investments, hedge funds, private equity, and real assets (e.g. commodities, real estate & natural resource - focused private equity).»

E.g. instead of real estate, you were mostly in stocks, or bonds, or bitcoin, or collectible Beanie Babies (pretty much the same as bitcoin).

In addition, global bonds don't tend to move in the same direction as stocks, particularly during periods of uncertainty.

Historically going back at least to the 1990's, stocks tend to move in the same direction as junk bonds on a lagged basis.

Total Chinese investment in the US will be unchanged, but its form would differ as investment in risky instruments decline and investment in US government bonds rise by the same amount.»

But if interest rates and bond yields had decreased in the meantime, you wouldn't be able to generate as much income as before with the same amount invested in a similar quality bond.

I have used a fall in exports to show how constrained Beijing's policy choices are, but I could just have easily done the same using as an example any change in the currency regime, the reform of the hukou system, the de-industrialization of the bankrupt northeast provinces, the development of the OBOR and Silk Road projects, changes in interest rates or minimum reserves, protecting the stock market from crashing, the provincial bond swaps, changes in the tax regime, improving energy and environmental policies, and so on.

In a way it's difficult for the bond market to be overvalued in the same sense as the stock market can be.

The sole investment available is a new Treasury security that earns the same interest rate as the government bond fund available to federal employees.

An ETF holds assets such as stocks, supplies, or bonds and trades at approximately the same price as the net asset value of its underlying assets over the course of the trading day.

«Both stock and bond values have been driven up by monetary policy, and as we approach an inflection point where that policy changes, they both have the same reason to sell off,» Mr. Knight said.

Another statistic courtesy of Mike Goldstein is that utility stocks, a high - yield group I call the most bond - like of all stocks, today sell for almost the same P / E multiple as the S&P 500.

A liquidity crunch where bond issues become too scarce is perhaps not as bad as an inflationary bond - dumping shock, but could undermine BOJ credibility to offer further monetary support all the same.

As Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.&raquAs Wolf Richter pointed out for Wolf Street earlier this month: «Since mid-December 2016, the Fed has hiked rates four times, in total by 1 percentage point, but over the same period, junk bond yields rated CCC or below have declined 1.5 percentage points as the bonds have rallied.&raquas the bonds have rallied.»

While not the same as government bonds, a market flooded with bonds of any kind will drive up interest rates.

Bill Gross (same age as my Dad) from Janus Capital Group, who built his > $ 1bln wealth at Allianz's Pimco and was the bond king ($ 270bln AUM at its zenith) until Gundlach wrestled it from Gross's arthritic hands, is also a bond bear.

Sale of capital assets such as property, gold, and bonds: in this case, the Capital Gains Tax is charged at the same rate as that of the investor's or the taxpayer's income tax slab rate.

The idiots have done the same to all their bond index funds as well (hedged to sterling).

Look at the same cheap tracker providers for your bond fund as you did for your equity exposure.

I've run a 20 - year cash flow analysis, assuming the bonds would all be sold at par value and rolled over into new 8 - year bonds having the same price and yield characteristics as the initial 8 - year set.

The zero coupon security carries the same backing as the original bond.

Your corporate bond income will stay the same as long as you own the bond, but your bonds» market value will vary.

If interest rates rise between the time a bond is originally purchased by the fund and the time that same bond is sold, this will create a capital loss for the fund and potentially its investors as well.

One unintended consequence of eternal QE may be that holders of balanced, passive portfolios don't see the same defensive performance from bonds as they have historically.

You can always shorten your bond duration, but too much and then it essentially becomes the same asset class as cash or money market funds anyway.

Shorter ‐ duration bonds do not provide the same degree of portfolio diversification as longer ‐ duration bonds.

(And the same with LS40, assuming it is taxed as a bond fund.)

If the ratio is at 100 %, it indicates that the yield on a AAA - rated municipal bond is the same as a Treasury security of the same maturity.