Equities in sentence

184 examples of Equities in a sentence

The era of cheap or zero-interest money that led to a wall of liquidity chasing high yields and assets – equities, bonds, currencies, and commodities – in emerging markets is drawing to a close.

Thus, many emerging markets’ growth rates in the next decade may be lower than in the last – as may the outsize returns that investors realized from these economies’ financial assets (currencies, equities, bonds, and commodities).

This has kept short- and long-term interest rates low (and even negative in some cases, such as Europe and Japan), reduced the volatility of bond markets, and lifted many asset prices (including equities, real estate, and fixed-income private- and public-sector bonds).

An asset diet rich in equities and direct investment and low in debt cannot substitute for other elements of fiscal and financial health.

On January 23, just a few days before equities crashed, Robert Shiller reminded us that the US had the world’s priciest stock market, with the highest cyclically adjusted price-earnings (CAPE) ratio of 26 stock markets for which there are comparable measures.

So, with the bond market appearing ripe for a dramatic correction, many are wondering whether a crash could drag down markets for other long-term assets, such as housing and equities.

Easing can boost growth by lifting asset prices (equities and housing), reducing private and public borrowing costs, and limiting the risk of a fall in actual and expected inflation.

A recent analysis by Andy Haldane of the Bank of England of long-term returns on UK financial sector equities suggests that the last 25 years have been very unusual.

Suppose you had placed a long-term bet on financial equities in 1900, along with a short bet on general equities – in effect a gamble on whether the UK financial sector would outperform the market.

Are Equities Overvalued?

These policies, by design, lowered the return on sovereign bonds, forcing investors to seek yield in markets for higher-risk assets like equities, lower-rated bonds, and foreign securities.

For example, Chinese state-owned enterprises that gained access to huge amounts of easy money and credit are buying equities and stockpiling commodities well beyond their productive needs.

But much of the rise is not justified, as it is driven by excessively optimistic expectations of a rapid recovery of growth towards its potential level, and by a liquidity bubble that is raising oil prices and equities too fast too soon.

The passive approach includes investment in indices that track specific benchmarks, say, the S&P 500 for the United States or an index of advanced economies or emerging-market equities.

Equities and bonds have soared on the back of monetary policies that have led to rock-bottom interest rates and massive liquidity injections.

While US and global equities were delivering high returns, political and geopolitical risks were kept largely under control.

It is now increasingly recognized that significant asset-price increases (for example, in real estate or existing equities) may well be reinforced by the pro-cyclical nature of risk assessment embodied in those rules.

China’s Intervention LessonsBEIJING – China’s stock market has been a hot topic since the summer, when a rapid rise gave way to a major plunge, triggering a global equities sell-off.

Goldman Sachs, for example, has made a point of publicly buying endangered assets in its Global Equities Opportunity Fund.

The continuous injection of liquidity would imply a greater likelihood of renewed asset bubbles in housing, equities, or modern art.

Some recent rises in the prices of equities, commodities, and other risky assets is clearly liquidity-driven.

To “liquidationists” of Mellon’s ilk, the pre-2008 economy was full of cancerous growths – in banking, in housing, in equities – which need to be cut out before health can be restored.

The government mandates the range of investment strategies, which vary in terms of the share of equities and fixed income that companies may offer.

This meant that an investor who was pessimistic about equities, but who might face constraints in hedging that risk by using derivatives or selling equities short, could reduce his exposure to equity markets by reversing the carry trade – borrowing in Australian dollars and investing in Japanese yen, for example.

The Global Economy’s New AbnormalNEW YORK – Since the beginning of the year, the world economy has faced a new bout of severe financial market volatility, marked by sharply falling prices for equities and other risky assets.

China’s purchases of Treasuries help hold down US interest rates – possibly by as much as one percentage point – which provides broad support to other asset markets, such as equities and real estate, whose valuation depends to some extent on Chinese-subsidized US interest rates.

Investors are concerned about Chinese equities’ erratic performance, regulatory risks, and policy surprises, as well as the uncertainties stemming from greater volatility in asset prices, including property prices, interest rates, and the exchange rate.

First, American stock markets rose giddily – adding $8 trillion in paper wealth to owners of US equities in a five-year period.

Fifth, the decline in oil prices is triggering falls in US and global equities and spikes in credit spreads.

Today, there are seven sources of potential global tail risk, and the global economy is moving from an anemic expansion (positive growth that accelerates) to a slowdown (positive growth that decelerates), which will lead to further reduction in the price of risky assets (equities, commodities, credit) worldwide.

Related words