This makes sense because the stock, unlike the bond, has much more price upside, and in theory you give up steady income for potential price appreciation.
But when it comes to the biggest house-price bubble in history, theory does not get you very far.
The combination of cheap jets with greater fuel efficiency and a critical mass of these critters in the sky can, in theory, lower the price per seat considerably.
Economic theory does suggest rising inflationary price pressures are the result of monetary policies that are too easy.
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Economic theory suggests that the future price is simply traders' best guess of the shape of things to come.
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Their theory: a high stock price tends to attract more patient and knowledgeable investors who pay closer attention to a company's long-term strategy than its ability to hit short-term earnings targets.
In a forthcoming article, Jeremy Bulow of Stanford Business School and Paul Klemperer of Oxford University use theory to show that such price caps mean those who value a good most do not necessarily get it.
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You find these same types of patterns in price charts of markets, according to the theory devised by R.
Without favorable price action, I expect that my macro theory is flawed.
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So the high probability that credit-rating agencies will downgrade UK banks' debt, as and when the government accepts the recommendations of the Banking Commission, should in theory have no impact on the price banks pay to borrow.
In theory, even in the market the price of staples is limited.
According to economic theory, this should reduce the relative price of labour and raise the global return to capital which is exactly what has happened.
In theory executives are heavily exposed to share-price movements.
Economic theory says increasing supplies of a currency leads to price inflation.
In theory, ratings agencies and mathematical models help investors price the risk they are taking on, even if the securities they are buying are scarcely traded.
But share price is supposed to be a function of future earnings, in theory, at least.
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More recently the court upheld a federal law prohibiting the private cultivation of marijuana under the theory that even private cultivation has an impact on the price of a commodity that is subject to intensive federal regulation.
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My theory says no: If you have a large number of price changes, a small number of days are important.
The price they paid incorporated all that was known about the stock, the theory goes, so if it plunged after the company released new information, the investor can be presumed to have bought it at an inflated price.
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Since price deflation is a greater threat to profits than stable or rising inflation, in theory this should also be good for equities.
One theory is that Glaswegians are just gloomier than other Brits and put a lower price on the future.
What sounds so simple in theory--opening offshore areas to increase oil production for the energy-price-shocked U.S. populace--turns out to be incredibly complex.
Not counted, for instance, are membership dues, such as what one might pay at the Metropolitan Museum of Art, on the theory that the member is getting something back for the payment, like reduced admission price.
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In theory, however, the undoubted value of these natural treasures should be reflected in their price, which should rise steeply as they become more scarce.
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In theory, a discretionary central bank could limit the quantity of money and achieve long-run price stability by controlling the growth of nominal final demand.
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Mere talk of opening up America's coastal waters, the theory runs, has convinced traders of a big future boost to oil supplies and so pushed the price down.
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And the evidence on price stickiness may make central bankers on both sides of the Atlantic more confident of keeping inflation low in theory, a hard task if prices rarely fall.
Ben Jacobsen, a finance professor at Massey University in New Zealand, has another theory: it takes investors (like economists) a while to work out the impact of oil-price movements on the economy generally.
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