In the circumstances of 1974 with the stock market depressed, it made sense to leverage up.
The pattern was interrupted when the financial crisis hit and 2007 and 2008, the last two years of the Bush administration, experienced a serious bear market but the circumstances were unusual, and the few times over the last hundred years that the cycle did not hold true to form did not affect the long-term percentage of the cycle.
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But life moves fast, and over the course of a few years family situation, employment circumstances, and market conditions all evolve.
He said further integration of the 17-nation eurozone was "indispensable", but "under no circumstances must this be seen as an alternative to the integrity of the single market, or indeed the integrity of the union as a whole".
Sales will continue, raw numbers are going to continue to climb, but the market share numbers have been strong due to a unique set of circumstances that are unlikely to happen again.
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When the parties to a transaction and the professionals facilitating it know that a given transaction format has been used before successfully after being stress tested and enforced in many forums under various circumstances, the risks of the deal are then limited to the specific business terms and market conditions rather than the formalities of the documents and their enforcement.
Under those circumstances, members of Congress and private-sector activists may in the future seek targeted capital-market sanctions in response to egregious developments abroad.
Of course, circumstances for these put and call buyers could always reverse as evidenced by the market shifts already observed today.
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The beauty of the market, Hayek brilliantly pointed out, is that it allows people to use knowledge of their particular circumstances to generate something valuable for others.
The market, having rallied sharply in three of the last four years, has accepted that our collective circumstances continue to get better, even as the utopian state remains maddeningly out of reach.
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While these two scenarios are more pessimistic than our current forecast, they could help explain some of the discrepancies between the market price and our price estimate, and it could highlight some potential sources of downside risk should circumstances deteriorate further than the ones outlined here.
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