Fundamentals
in sentence
405 examples of Fundamentals in a sentence
The economic
fundamentals
of supply and demand remain the key factors in driving the direction of commodity prices and determining whether the commodity super-cycle will persist.
A new Flexible Credit Line makes high-volume financing available – even before a crisis has struck – without any ex post policy conditionality to qualifying countries with strong economic
fundamentals
and policy frameworks.
After months of market volatility, combined with a reassessment of the politics and the economic fundamentals, the Fed backed down.
The first – and “easiest” – mode is when investors refuse to buy at normal prices not because they know that economic
fundamentals
are suspect, but because they fear that others will panic, forcing everybody to sell at fire-sale prices.
Indeed, these efforts have been so successful that few members of the public are aware of the scientific consensus on the
fundamentals
of climate change.
But our solid understanding of the
fundamentals
of global warming – the base of our knowledge of climate science – should provide reason enough to press on with the implementation of carbon-free energy technologies.
It needs to rethink the
fundamentals
of an economy and political system in which entrenched interests have become “veto centers” for reform.
And while the Fed’s recent rhetoric has been dovish, the
fundamentals
of the US economy – particularly those that supposedly matter most for the Fed – indicate a clear case for further rate hikes.
With the Fed deciding in their just-concluded April meeting, yet again, to hold rates, their dilemma is set only to intensify this year: normalize monetary policy in line with domestic fundamentals, or cede to the pressures of global financial markets.
And now, like all asset-price surges that are divorced from the
fundamentals
of supply and demand, the gold bubble is deflating.
The external
fundamentals
of the eurozone’s periphery are now improving rapidly.
Others (think Cyprus, Iceland, Ireland, the UK, and the US) resorted to unsustainable surges in leverage among financial institutions to fund private-sector activities, sometimes almost irrespective of underlying
fundamentals.
That is a surprising proposition, given that commodity bonds have an obvious latent market, rooted in real economic
fundamentals.
For example, this summer’s stock-market crash was widely viewed as a natural correction, because equity prices – driven largely by government interventions – had risen over the previous year far above what economic
fundamentals
merited.
They need to reintroduce true two-way risk, so that asset prices again reflect underlying
fundamentals.
Foreign direct investment, on the other hand, is far more stable and driven by domestic
fundamentals.
The major economies should ensure that such derivatives are restricted as far as possible to qualified and knowledgeable investors who trade on the basis of expectations regarding market fundamentals, rather than mainly or only for short-term speculative gain.
Indeed, last summer, when speculation that the Fed would soon begin to taper its purchases of long-term assets (so-called quantitative easing), financial-market pressures were strongest in markets suspected of having weak
fundamentals.
Moreover, their macroeconomic
fundamentals
are sound, and they have used macro- and micro-prudential tools to contain surges in capital inflows and minimize their destabilizing effects on asset prices and credit conditions.
Generally, those that have fared better, such as India, have combined sound growth
fundamentals
and reforms with pragmatic and activist measures to counter the external sources of volatility.
But for every market mispricing there is a profit opportunity: if long-term interest rates are, indeed, too low and long-term bond prices too high, investors will short long-term US bonds, park the money elsewhere, wait for bond prices to return to fundamentals, and then cover their short positions.
By doing so, they will push prices close to
fundamentals
today.
Economists believe that market forces drive prices to
fundamentals.
The traditional model of trading financial support for conditionality does not bode well with emerging economies that, despite having strong macroeconomic fundamentals, still need help to cope with external shocks.
If the IMF is to provide short-term liquidity to members in need, a crucial question that must be resolved is whether such financial assistance should be available only to those with strong macroeconomic
fundamentals.
In short, Venezuela is the poster child of the perils of rejecting economic
fundamentals.
One of those
fundamentals
is the idea that, to achieve social goals, it is better to use – rather than repress – the market.
Finally, Bernanke claimed that “the growth
fundamentals
of the United States do not appear to have been permanently altered by the shocks of the past four years.”
Market participants would rationally assume that every stock price is the true expected present value of future cash flows, with the appropriate rate of discount, and that those cash flows reflect
fundamentals
that everyone understands the same way.
The scientific community is split between two main approaches: “tinker with agricultural details” (TAD) and “mend societal fundamentals” (MSF).
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