Sentences with phrase «valuations of these stocks tend»

When rates are low, investors put more value on future earnings, and the valuation of stocks tends to rise.

This is why the relative valuations of these stocks tend to fall as rates rise.

Not exact matches

Although value stocks typically hold up better in times of volatility, this bull market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum stocks, which tend to have more expensive valuations.

That's because bond yields and stock valuations tend to track each more closely at higher levels of inflation.

Vertical factor: spread of Baa bond yields over Aaa bond yields — Hypothesis: When spreads are high, stock valuations tend to be low.

Most of these stocks tend to have relatively low valuations and steady growth potential...

That brings us to the next potential risk — the risk that the largest companies in the S&P 500 Index also tend to be overvalued when compared with their 10 - year average price / earnings (P / E) ratio.2 According to our research taking these valuation measures into account, 70 % of the 10 largest stocks in the S&P 500 Index were overvalued, as of December 31, 2015 and 56 % of the top 25 stocks are overvalued, the very same ones that make up a third of the index allocation.

Multiply this potential for valuation bias across all investors, and inevitably you tend to end up with a pretty inefficient / irrational market... at least in terms of individual stocks & sectors.

And so, accordingly, it tends to attract pretty dissimilar investor constituencies, who may only focus on: i) a handful of the largest caps, regardless of valuation & exposure, ii) stocks which (may) offer cheap / alternative access to overseas growth (a surprisingly large number of Irish companies are UK / Europe / globally focused), iii) stocks offering domestic exposure (notably, economic pure - plays are actually pretty rare), iv) a listed commercial & residential property sector that's only emerged in the past couple of years, and finally (& perhaps most notoriously) v) a (junior) resource stock sector that's been decimated in the last few years.

The problem with rigorous stock valuation is quant tunnel vision — you tend to end up weighing & ranking all stocks purely in terms of their upside potential.

Also, raw application of simple valuation ratios tend to work on average in stock selection.

The historical cost accounting principle, which tends to understate certain asset values, and the supply and demand forces of the marketplace generally push stock prices above book value per share valuations.

The term «interest» tends to be used loosely when discussing valuation of stocks.