Sentences with phrase «with high stock valuations»

And interest rates (red) tend to be inversely correlated with high stock valuations (blue):

Not exact matches

Until very recently, tech stocks have been racing pretty high, pulling stock markets up with them as their valuations stretch.

Simply put, a deal that offers participating preferred stock creates a lower implied valuation for your business than a plain vanilla term sheet with no participation feature, because the investors will end up with a disporportionately higher piece of the value created.

Another example, Macy's, which is popular with value investors for a high dividend combined with a low valuation multiples, also saw its worst single - day stock performance post earnings in over a decade, falling 14 percent.

Domestic - facing stocks have faster expected sales and earnings growth but trade at a nearly two point P / E multiple valuation discount relative to stocks with high international sales.

Equities really have had the best of all worlds these past few years, with earnings growth in the double digits and financial conditions remaining very accommodative, despite the recent rise in both short - and long - term interest rates.1 The combination of rising earnings growth and benign financial conditions is a powerful set of tailwinds which usually drives stock valuations higher.

At longer time frames, the basic relationship generally still holds: Higher U.S. stock market valuations are associated with lower future returns.

We may not be quite there with tech yet, but as stock valuations climb higher and higher, tech will be feeling the same pressures that Wall Street did a decade ago.

To the extent that lower Treasury yields are even weakly associated with higher equity valuations, recognize that this effect is also expressed over time as lower subsequent stock market returns.

While stocks have a terminal value beyond a 10 - year period, the effects of interest rates and nominal growth on those projections largely cancel out because higher nominal GDP growth over a given 10 - year horizon is correlated with both higher interest rates and generally lower market valuations at the end of that period.

With a track record of high profitability, significant growth opportunities, and a cheap valuation, this stock could offer significant upside for investors.

The MSCI Global Gold Miners Index has rallied an incredible 76 % this year, but much of the performance is due to the recovery in valuations: According to Bloomberg data, gold miner stocks were battered last year, with the index down 45 % from its 2015 high.

Our valuation models are the best in the business at identifying the stocks with the highest and lowest market expectations.

The stock has dropped over 50 % in the past eight months, and even if the firm's growth slows dramatically and margins shrink, the stock's cheap valuation makes it a safe stock with high potential upside.

Amazon, categorized as a consumer discretionary name rather than a technology stock, weighed on its sector, which also includes Netflix and which is grappling with the potential for trade conflict and investors» growing impatience with high U.S. stock valuations.

«While our statistical findings suggest that diversity does coincide with better corporate financial performance and higher stock market valuations, we acknowledge that we are not able to answer the causality question,» it notes.

With these high valuations comes the specter of a bubble not seen in international stocks.

The valuation is neither entirely unreasonable nor unusually appealing, but compared to the fairly high valuation of the market currently, it may make a good choice for a stock with a decent dividend yield (3.43 %) and consistent dividend growth history.

Coupling that lower valuation on the company's earnings with the much higher current yield leads to a lot of upside, along with what could be more near - term and long - term income from the stock.

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.

With valuations very rich, bullish sentiment high, and stocks generally overbought, there's a certain momentum to the market that makes it likely - in terms of probability - that stocks will be higher in the weeks ahead.

Passive investing substitutes diligence with diversification and can create a «rising tide lifts all boats» effect on the valuation of both high and low quality stocks within an index.

It is a financial ratio used for valuation: a higher PE ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with lower PE ratio.

Without exciting user growth numbers, investors were left with the company's losses and high valuation, and they punished the stock accordingly.

Rather, it means that investors will receive returns consistent with relatively high starting valuations — nominal total returns for the stock market of around 5 % -6 %.

You seem pretty bearish on the Internet stocks with high market valuations.

UK stocks (as measured by the FTSE 100 Index) offer the highest dividend yield of any major region (as measured by the MSCI World Index).1 UK valuations are the cheapest relative to the rest of the world in 15 years.2 What's more, FTSE 100 Index companies with more than 70 % of their revenues from abroad stand to benefit from the weaker pound.

With one week left in April I decided to deploy some fresh capital into a market that has been very, very generous as of late in terms of giving us much better buying opportunities in many «name brand» stocks that have been previously deemed untouchable because of low yields, high valuations and relatively speaking, high prices.

This predictive power is strong for speculative stocks with highly subjective valuations (small - capitalization stocks, stocks without positive earnings, growth stocks and stocks that pay no dividend), because their prices tend to be most overvalued when sentiment is high.

Despite the elevated level of valuations, I'm still finding good deals among high - quality value stocks, and remain focused on high - quality companies with strong competitive positions.

A quantifiable response to investor's becoming less selective are the number of private companies which become attracted to the high valuations the stock markets appetite may award them with, and the lower quality threshold the stock market demands for an Initial Public Offering (IPO).

Take advantage of your early access to our reports and protect your portfolio from stocks with misleading earnings and high - risk valuations.

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

Stocks with attractive valuation ratios receive higher allocations, and both trailing and forward price - earnings valuation ratios are considered when determining allocations.

Periods of low volatility often coincide with higher levels of valuation, and that sort of low economic variability can help to generate stock market bubbles.

d) Stocks with high valuations should use excess cash to pay dividends; those at low valuations should buy back stock.

I posed a question a few weeks ago: if Valuation Informed Indexing really is superior (and I had been convinced from this site that it in fact was) then why was I getting higher Year 30 SWRs with 80 % or 100 % stock allocations rather than Switch A or B?

With stock market valuations rather high, could it make sense to adopt such a strategy as an alternative to indexing?

With high market valuations and an ever - lasting bull market, one might get scared to invest in equities (stocks) and stay on the sidelines.

I have two questions: 1) Is there any argument that can be made for going with a stock allocation (I do not mean for those going with a high - dividend stock strategy, I am talking about those invested in a broad U.S. stock index) above 30 percent at today's valuations?

Years of artificially low interest rates have led to artificially high stock prices with valuation indicators, such as PE, PB and Shiller's CAPE, flashing red for some time now.

I have filtered out high growth Indian stocks with reasonable valuation based on several parameters.

However it is always difficult to find high growth stocks with reasonable valuation.

3) Varying stock allocations in accordance with valuations to purchase high quality stocks with high dividends (dividend strategy).

With the stock's current valuation appearing reasonable, especially relative to the REIT's high quality, today could be a good time to more closely evaluate STORE.

Chuck Carnevale notes the problem with finding good dividend stocks: Very high valuations.

Question: Is the sweet spot for covered call stock selection buying solid balance sheet / good cash flow companies with a history of paying a growing dividend (and a payout ration say less than 70 %) during times when implied volatility may be higher (such as now)- so valuations for the stocks you are writing calls on are lower - despite being solid companies.

The proposal, led by a mutual fund with investments in Oracle, points out that multiple studies show that board and managerial diversity are linked to better corporate performance and higher stock market valuations.

i never agreed with your philosophy of timing the market for valuations of stocks, but I do agree with your calculators that show a higher SWR based on Vvaluations of stocks, but I do agree with your calculators that show a higher SWR based on ValuationsValuations.

The 30 - Year Safe Withdrawal Rate with stocks and corporate bonds is higher than 5 % (plus inflation) provided that you vary allocations with valuations.