Equities
in sentence
184 examples of Equities in a sentence
Two dismal months for financial markets may give way in March to a relief rally for assets such as global equities, as some key central banks (the People’s Bank of China, the European Central Bank, and the Bank of Japan) ease more, while others (the Fed and the Bank of England) will remain on hold for longer.
As with fear of terrorism and suspicion of equities, geographical celebrity appears resilient, if not self-reinforcing: the more famous New York, Paris, and London get, the more glamorous they become.
Last year, one out of every six dollars of assets under professional management in the United States – a total of $6.6 trillion – was allocated toward some form of sustainable investment, especially public
equities.
But, thanks to the appreciation of foreign holdings of Japanese equities, the country’s net international asset position actually deteriorated, from a peak of $3.8 trillion at the end of 2012 to $2.8 trillion at the end of 2015.
But if the Fed refuses to accommodate inflation produced by a dollar collapse and accepts a depression in the belief that the long-run benefits of maintaining its credibility as a guarantor of price stability will come before we are all dead, American
equities
will suffer.
Believing that markets always know best, they dismissed warnings by a few mere mortals (including me) about overpricing of
equities
and housing.
So central banks are transferring their excess reserves to existing or newly created SWF’s, which in turn invest in high-return
equities.
Near-zero policy rates encourage “carry trades” – debt-financed investment in higher-yielding risky assets such as longer-term government and private bonds, equities, commodities and currencies of countries with high interest rates.
Once returns on commercial paper had been driven to all-time lows, investors continued to push into
equities.
Approximately 63% of global institutional investors increased allocations in developed-market
equities
in the six months prior to April 2015, according to data from a recent State Street survey – even though some 60% of them expect a market correction of 10-20%.
As long as the tailwinds of global quantitative easing, cheap oil, and further institutional inflows keep blowing,
equities
could continue to rally.
Some resorted to capital-account regulations on inflows, such as taxes on the foreign purchases of bonds, equities, and derivatives, reserve requirements on short-term inflows, and so forth.
Indeed, because the creation of new assets in developing countries will be slower than the increase in demand for them, the price of existing assets in those markets – equities, bonds, real estate, human capital – are likely to overshoot their long-term equilibrium value.
As a result, housing and domestic
equities
are the main investments available to them.
The double-digit drop in the Shanghai Composite Index since June has not triggered an economic crisis largely because fewer than 10% of Chinese households participate in the stock market, and
equities
comprise less than 15% of household assets.
The funds have mainly invested in government bonds, but they will allocate more of their assets toward private
equities
and bonds as the Argentine economy recovers from its depression.
It supports the purchase of
equities
by central banks to reduce asset-price volatility, restore the value of wealth, and prevent a future market crash.
This strategy was aimed at keeping long-term interest rates low enough to boost demand for
equities
and real estate, and thereby increase wealth and spending.
An emerging consensus suggests that the prices of many risky assets – including
equities
– have fallen so much that we are at the bottom and a rapid recovery will occur.
If so, shouldn't investments in
equities
be shunned?
It is small wonder, then, that investors desperately searching for yield have rushed into equities, commodities, credit instruments, and emerging-market currencies.
With real (inflation-adjusted) GDP rising at more than 3% this year, the strength of the US economy has induced foreign investors to shift their holdings to US
equities.
The rise in long-term rates will reduce the present value of future corporate profits and provide investors with an alternative to
equities.
Investors have sat on the sidelines, and the MSCI index that tracks returns on emerging-market
equities
has stagnated.
At the annual Fed conference at Jackson Hole, Wyoming in August, Fed Chairman Ben Bernanke explained that he was considering a new round of quantitative easing (dubbed QE2), in which the Fed would buy a substantial volume of long-term Treasury bonds, thereby inducing bondholders to shift their wealth into
equities.
And does artificial support for the bond market and
equities
mean that we are looking at asset-price bubbles that may come to an end before the year is over?
With US domestic bond yields continuing to fall and US
equities
reaching an upper price limit, owing to the real economy’s sluggish recovery, more money is expected to flow to commodity markets and higher-yielding emerging countries.
NEW HAVEN – In recent months, concern has intensified among the world’s financial experts and news media that overheated asset markets – real estate, equities, and long-term bonds – could lead to a major correction and another economic crisis.
While China is investing in pipelines in Central Asia and Russia, and in oil
equities
in Africa and elsewhere, according to Yang, for China, “the Gulf region’s abundance of resources, its geographic position, and good transport links make it the primary option on the list of international oil suppliers.”
In fact, commodity futures have become increasingly appealing to non-commercial investors, as their returns seem to be negatively correlated with returns on
equities
and bonds.
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