And so it's very hard to predict exactly what the long rate will do, even when the Fed is cutting.
This de facto management of the long rate, according to Lehmann, is also preventing yields from spiking higher than they have.
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And because the Fed will no longer be managing the long rate.
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Some seniors have been burned by cards with a short-term low interest rate followed by a high interest rate, so be sure to read the fine print and know how long the rate will last.
LUKOY, which has grown earnings per share at a 10.2% rate over the long term (I use an average of the three-, four-, and five-year EPS growth rates to determine a long-term rate), trades for only 4.5 times earnings, and has a 5.8% dividend yield.
Those who play the carry trade game look for the first signs of a long term rate rise.
In 1998, after the top long term rate on capital gains was cut to 20%, the top 400 paid 22%.
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Net long-term capital losses from any rate category are first applied against the highest tax rate long-term capital gains (meaning, for example, gains from collectibles taxed at 28%).
The company launched four funds earlier this summer called the Rydex SGI Event Driven and Distressed Strategies Fund, the Long Short Interest Rate Strategy Fund, the Long Short Equity Fund and the Alternative Strategies Fund.
When a company buys back stock instead of paying a dividend, the stock value appreciates by the like amount of the dividend and long-term shareholders get a 50% savings on their tax bill (assuming a 40% ordinary income tax rate versus a 20% long term capital gains rate).
Friedman would have argued to do less and grow the monetary base at a steady rate that is the sum of what you want the long-term inflation rate to be and what you think the long-term growth of the economy will be and then, like the bumper car, take your hands off the wheel and let capitalism and markets do the rest.
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In other words, the Fed gave a specific frame for its short-term interest rate policy, but not clear frame for its long-term rate policy not QE3 for the time being.
Another is that the IRS is using this year's income tax filings to refund billions in long-distance phone taxes, which it belatedly conceded it had wrongly imposed on cellphone bills and certain flat-rate long-distance charges.
As I pointed out here, because of the historically low 15% rate on long term capital gains (compared to a top tax rate of 35% for ordinary income, like salary) the 400 highest income Americans now pay a lower effective federal income tax rate than the merely well paid.
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Moreover, if the Bush era tax cuts are simply allowed to expire, as scheduled, at the end of 2012, the top rate on long term gains will revert to 20%, while the rate on dividends will more than double to 39.6%.
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Up until now the Fed's statements have only provided vague statements as to long-term rate movements.
BBC: US Federal Reserve to publish interest rate projections
His ambition is no less than to raise Britain's long-term rate of economic growth.
The average long term Treasury rate since 1870 is 4.3% and the average annual CPI is 2.1%.
Rather, the long-term rate of return on stocks is determined by the ratio of share price to dividends.
Today, the President extols the virtues of tax hikes as growth creeps along at a long-term rate of 1.5%.
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So the central bank will not rush to reverse its long run of rate rises that have left investors squealing.
Lydall ( LDL) lowered its expected long-term rate of return on plan assets to 7.75% for 2012, from a prior 8%.
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This implies that the long-term rate of poverty reduction slightly over one percentage point a year continued unabated in 2008-10, despite the dual crisis.
Half the long-term rate of decline is attributable to that country alone, which has taken 660m people out of poverty since 1981.
This brings down that long term interest rate by some small amount.
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We still believe that the real cost of capital is too low, and hence expect a long drawn out rate hiking cycle into 2012.
The current top rate on long-term capital gains is 15%, and the top rate on ordinary income such as interest and salary is 35%.
If you're investing in stocks, it probably makes sense to pay a premium to lock in a long-term rate and protect yourself against getting whipsawed.
They would have a flash of insight and realize that our long-term rate of economic growth is infinitely more important than either taxes or spending.
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