But now the impact on exports of higher oil prices, coupled with a sharp rise in the yen since last summer a consequence largely of financial-market volatility throws that profitability into question.
Cheung Kong didn't respond to requests for comment, but in his twice-yearly news conference on Tuesday, Mr. Li warned that investors, "definitely shouldn't go into property speculation" at this time because of the financial-market volatility.
After the financial crisis vastly amplified market volatility, CVRs began to play an increasing role in many mergers and acquisitions, especially in the risk-laden biotech and pharmaceutical sectors.
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Although you'd never know it from market volatility, the financial fever in the U.S. may be about to break.
Federal Reserve Chairman Ben Bernanke warned of continued strain on the U.S. economy and noted the negative impact of elevated volatility and risk aversion in the financial market during testimony before a joint committee of Congress Tuesday.
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These companies are especially attractive given inefficiencies created by recent market volatility and reduced sell side research coverage in the wake of financial services industry merger activity.
It says "financial conditions remain highly vulnerable to shifts in market sentiment, as evidenced by the renewed volatility in the wake of the inconclusive outcome of Italy's elections and recent events in Cyprus".
For example, large cap stocks have historically returned about 9% per annum in the U.S., but due to the new market realities, of slow growth, heightened volatility, punctuated by periodic financial crisis, an annual return estimate of 6% to 8% for a large cap stock portfolio might be more realistic.
While equities encompassing all market capitalizations have been impacted by the market correction, the volatility associated with hedge funds and the massive contraction in financial services have exacerbated pricing disparities among small-cap equities.
After all, the current market volatility has largely been created as a result of the intersection between the financial sector and sovereign debt, yet having very little to do with stable companies with superb business models and outstanding brand equity that I traffic in.
Consider that during this 42-year period we had wars, financial and energy crises, technology and real estate bubbles, and of course periods of high market volatility.
To shield themselves temporarily from the volatility in financial markets, those with weaker financial structures may need some form of capital controls, preferably market-based.
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