Public markets offer few options with meaningful
yield potential in today's low interest rate environment.
Inflorescence architecture is a key determinant of
yield potential in many crops and is patterned by the organization and developmental fate of axillary meristems.
Palmer amaranth is becoming increasingly resistant to herbicides and spreads so prolifically that it could drastically reduce farmers»
yield potential in affected fields.
Both Chile and Argentina are reporting lower crop projections, as frost and other weather issues appear to have damaged
yield potential in both markets.
Further, even at the vegetative growth stage, heat stress can cause leaf yellowing and accelerated development, leading to low
yield potential in sensitive rice varieties.
Not exact matches
Although there may not be a bond bubble, with investors starved for
yield, Gundlach predicts a
potential bubble could form
in credit risk as investors increase their leverage on riskier debt securities like junk bonds and emerging market debt.
We feel this provides the best trade - off
in terms of valuations, shareholder
yield, growth expectations and the
potential to buffer some of the downside if markets sell off.
«With our forecast projecting output growth to slow below
potential in 2020, the inversion of the
yield curve would be a meaningful signal regarding the specter of a looming recession.»
And for taxable accounts with balances over $ 500,000, the robo - advisor offers «advanced indexing,» where it weights the stocks
in a portfolio based on various factors, including low volatility and high dividend
yield, to further power
potential returns, all for the same advisory fee that applies to all accounts.
Add
in the
potential 4 % (or greater)
yield detailed below, and it's clear why JBSS could be a great portfolio addition.
In either case, this stock offers low valuation risk, a large
potential yield and significant upside
potential.
But the simmering civil war
in Syria still holds the
potential to create a much wider field of chaos that triggers a rush into safe havens bonds, which
in turn keeps Treasury
yields contained.
We believe this has been a critical factor behind the multi-decade drop
in global
yields, beyond the more familiar decline
in potential growth as societies age, productivity softens and central bank inflation targeting keeps price volatility
in check.
In addition to the positive technical element I mentioned earlier, the
potential removal of the alternative minimum tax could cause AMT paper to trade closer to the
yield on other municipal bonds.
The
potential for a lower corporate tax rate may also lead to interesting opportunities
in BB - rated high -
yield bonds.
This leads to a frightening conclusion: that both lower quality and lower
yields of such «previously sacrosanct debt represent a
potential breaking point
in our now 40 - year - old global monetary system.»
With market volatility hitting multi-decade lows, junk bond
yields also at record lows, the median price / revenue ratio of S&P 500 constituents at a record high well - beyond 2000 levels, and the most strenuously overvalued, overbought, overbullish syndromes we define, I'm increasingly concerned about the
potential for an abrupt «air pocket»
in the prices of risky assets that could attend even a modest upward shift
in risk premiums.
Growth returned to favor
in early September, a
potential harbinger for what historical valuations would argue is an overdue correction
in high -
yielding stocks.
These behavioral finance influences can skew a portfolio's overall allocations toward an overemphasis of potentially higher -
yielding equities that
in some instances may represent more downside risk than upside
potential at current valuation levels.
For stocks, it's important to have stocks
in your portfolio from a large variety of companies, including companies
in different sectors or industries, such as consumer staples or materials; from companies of different sizes, such as large - cap or small - cap stocks; from companies
in different countries and from companies that either have growth
potential or good dividend
yields.
• Lower - quality debt securities generally offer higher
yields but also involve greater risk of default or price changes due to
potential changes
in the credit quality of the issuer.
The methodology provides a well - screened group of stocks that also delivers
yields greater than the market (S&P 500
yields ~ 2 % while the stocks
in our portfolio have an average
yield of 6.5 %), safety
in the sustainability of the
yield because of strong free cash flow, and the
potential for capital gains as each stock is currently undervalued.
On April 24, the US 10 - year Treasury
yield crossed the 3 % threshold for the first time
in four years, prompting much discussion about the
potential implications for the US economy.
This,
in conjunction with the stock's impressive
yield and above - average appreciation
potential, make it appealing to investors of all ilks.
ZIRP and NIRP policies are forcing investors out of cash and near - zero or negative
yielding «havens» and into slightly higher
yielding investments
in which the
potential rate of return does not even remotely reflect the degree of risk being taken.
The
potential for further central bank interest - rate hikes, inflation swings, a surge
in US Treasury
yields from Fed action, or ambiguities surrounding proposed legislation could reduce the attractiveness of mergers and acquisitions.
Wells Fargo Investment Institute strategists provide perspective on the stock selloff and rise
in Treasury
yields plus
potential opportunities for investors.
With a
yield near 5 % and double - digit dividend growth, along with the
potential for 17 % upside, this stock currently offers one of the most outstanding combinations of income and upside
in the dividend growth stock universe.
That tantrum refers to the
potential reaction of investors and global markets — accustomed to years of easy money —
in the face of a simultaneous rise
in interest rates and
yields in the US, Europe and Japan.
The bottom line:
In an environment of generally decent (albeit recently disappointing) growth and gently rising yields, high yield offers attractive potential in a yield - starved worl
In an environment of generally decent (albeit recently disappointing) growth and gently rising
yields, high
yield offers attractive
potential in a yield - starved worl
in a
yield - starved world.
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.
These stocks generally offer competitive
yield and upside
potential through capital appreciation, and they have historically delivered attractive performance
in rising rate environments relative to the highest
yielding stocks.
Generally speaking, joint market action
in Treasury
yields, credit spreads, commodities, and market internals provide the earliest signal of
potential economic strains, followed by the new orders and production components of regional purchasing managers indices and Fed surveys, followed by real sales, followed by real production, followed by real income, followed by new claims for unemployment, and confirmed much later by payroll employment.
Analysis suggests that the decline
in the real
yield is primarily related to a slowdown
in the growth of the economy's
potential.
While we're not expecting an imminent significant sell - off of these peripheral government bonds, we do feel the
potential yield opportunities are not as attractive as
in the credit sector.
That's the trade - off we're making whenever we make a high -
yield trade: We're limiting our
potential upside
in return for guaranteed income.
Possible catalysts include continued Fed rate hikes, the flattening of the
yield curve, the
potential resurfacing of inflation, a pickup
in equity volatility, and geopolitical events.
For example,
in high
yield strategies, we may want to screen for value and quality to potentially lower downside risk without giving up
potential yield.
While the Fed has affected the real
yield, the bigger impact has come from the marked slowdown
in the economy's
potential growth.
The Oakmark Equity and Income Fund invests
in medium - and lower - quality debt securities that have higher
yield potential but present greater investment and credit risk than higher - quality securities, which may result
in greater share price volatility.
A
potential surprise: A rally
in risk assets prompted by investors shifting out of cash and low -
yielding assets
in search of higher returns.
Meanwhile, emerging market bonds that make up the J.P. Morgan EMBI Global Core Index, currently offer similar
yields and may benefit from global reflationary trends despite the
potential challenge of higher valuations and a rising U.S dollar
in the short term.
The 10 - year US Treasury
yield hit the key psychological 3 % earlier this week and now threatens to extend its gains, placing risk assets
in jeopardy as investors weigh the
potential consequences.
FRA: Given the
potential in Europe for being the epicentre of perhaps the next financial crisis as Peter Boockvar mentions, could we see international capital flows come from Europe and elsewhere to the U.S. markets especially as you mentioned there could be pressure on the long end of the
yield curve with the movement into equities.
If they bought and held a Topix ETF (Japanese stocks) instead, they would earn a current dividend
yield of 2.37 percent per year, not including any gains from
potential appreciation
in the share prices.
Bringing
in an outside financial partner is a transformational decision that has the
potential to
yield many positive benefits.
That means there are a number of possibilities
in the financial world among companies raising or restoring dividends to find
potential opportunities for dividend
yield along with stock - price appreciation.
From early May to mid June, domestic bond
yields followed global
yields lower on concerns about
potential deflationary pressures
in the US and related expectations of easier monetary policy abroad and
in Australia.
Investors may not want to make any portfolio changes just to catch a
potential rise
in bond
yields, though.
By purchasing these companies after a price decline, we find we are able to control risk
in the portfolio as these investments often have less downside while offering a decent
potential return.The U.S. Equity Fund seeks to invest
in companies with a lower Price to Book Ratio, lower Price to Earnings Ratio and higher Dividend
Yield than the S&P 500 index.