Example collocations logo

Asset in sentence

1608 examples of Asset in a sentence

Investors, especially, need to recognize that even if broader positive trends in globalization and technological progress continue, a rise in macroeconomic volatility could still produce a massive fall in asset prices.
This brings us to the $200 trillion question (roughly the value of global money and asset markets, including housing): What could cause macroeconomic volatility to start rising?
In short, if the macroeconomic moderation that dominated 2006 continues into 2007, look for further asset price inflation (but don’t hold your breath for the Dow to hit 36,000).
And it was the motivation behind the 1969 creation of the IMF’s Special Drawing Right (SDR), which was supposed to become “the principle reserve asset in the international monetary system.”
As long as that partition remains in place, SDRs will function, at best, like a credit line that can be used unconditionally by the holder – a kind of overdraft facility, not a true reserve asset.
The resulting underinvestment and depreciation of the global economy’s asset base are suppressing productivity growth and thus undermining sustainable recoveries.
Meanwhile, savers are being repressed, asset prices distorted, and incentives to maintain or even increase leverage enhanced.
Thus, it would run no risk of inflating asset price bubbles.
But higher interest rates also imply large capital losses for central banks’ asset holdings.
Will opinion be sympathetic to the Fed when politicians like Ron Paul excoriate it for losing tens of billions of dollars monthly on its asset holdings?
In 2009, when financial markets were in turmoil and the economy was in free-fall, the US Federal Reserve took matters a step further, initiating large-scale asset purchases, or quantitative easing (QE).
Taking him at his word, markets immediately traded the euro up, because investors concluded that, under these circumstances, negative rates and asset purchases would no longer be warranted.
But, as with today’s toxic assets, there was no market, and rapid disinvestment would have triggered fire-sale prices, depressing all asset values in the economy and resulting in more bank failures.
Indeed, the very policy actions needed to reduce the risks of another financial crisis force banks and asset managers to lend and invest for the short term, passing up often more profitable, but less liquid, longer-term opportunities.
Monetary stimulus was often compared to an illegal performance drug, which would produce a brief rebound in economic activity and asset prices, inevitably followed by a slump once the artificial stimulus was withdrawn or even just reduced.
And asset prices, far from collapsing, hit new highs and accelerated upward from early 2013 onwards – exactly when the Fed started talking about “tapering” QE.
While the Fed is raising interest rates, Europe and Japan are planning to keep theirs near zero at least until the end of the decade, which will moderate the negative effects of US monetary tightening on asset markets around the world, while European unemployment and Asian overcapacity will delay the upward pressure on prices normally created by a coordinated global expansion.
When this optimistic shift goes too far, asset valuations rise exponentially and the bull market reaches a dangerous climax.
So long as such cautiousness continues, asset prices are more likely to rise than fall.
Clearly, the Chinese government hoped that positive wealth effects from rising asset prices would stimulate consumption.
First, government bonds are the reference asset for banks and insurers, because they are easily tradable and ensure liquidity.
A second lesson speaks to addiction – namely, a real economy that became overly reliant on QE’s support of asset markets.
As such, monetary policy, rather than market-based fundamentals, increasingly shaped asset prices.
In an era of weak income growth, QE-induced wealth effects from frothy asset markets provided offsetting support for crisis-battered US consumers.
By conflating QE-induced wealth effects with the effects on borrowing costs that arise through conventional channels, Bernanke conveniently sweeps aside most of the risks described above – especially those pertaining to asset bubbles and excess leverage.
The Slavery IncentiveCAMBRIDGE – Have you ever wondered why business schools do not teach the proper way to whip a worker to obtain maximum effort without damaging the asset?
Poor people are locked into a low-level asset (or capability) trap.
In truth, however, the big story is the uneerie calm that has engulfed virtually every major asset class, from stocks to bonds.
They have also contributed mightily to the high general level of asset prices, helping create the vast riches of which today’s hungry young traders are so jealous.
On the contrary, Turkey could represent an important asset to its European and American partners.
BackNext