Day - to - day news stories are merely opportunities for depressed risk premiums to shift up
toward more normal levels, but the normalization itself is inevitable, and the spike in risk premiums (decline in prices) need not be proportional or «justifiable» by the news at all.
Given today's razor thin risk premiums, there is substantial downside risk to stock prices if that risk premium is shocked
toward more normal levels.
Not exact matches
The Fed is helping the process of moving
toward more normal interest rate
levels by winding down its balance sheet, slowly releasing the air from the balloon, he said.
In the long run, the Federal Reserve anticipates that its balance sheet will shrink
toward more historically
normal levels and that most or all of its security holdings will be Treasury securities.»
The doctor may order
more blood tests after treatment to make sure the
level is going back
toward a
normal range.
What we have seen over the past 2 + years is probably a mean reversion, with Lowe's stock price slowly returning
toward more normal valuation
levels.
The earliest ARMs didn't offer any discount on the initial rate — no «teasers» here — but instead the opportunity that your mortgage rate and monthly payment would decrease as market interest rates returned
more toward normal levels.
If the P / E contracts
toward normal levels instead, stocks may very well underperform Treasury bills for
more than a decade (as they did from 1965 through 1986).