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Since the end of 1999 the return on American equities has been 7.6 percentage points a year lower than that on government bonds (see chart 1).
Such stripping of equities has been done before, in 1984 with shares of the old American Telephone and Telegraph Company and last year with Exxon stock.
Any long-term financial transaction can be subject to market fluctuations and it is the case that the portion of refurbishment funds invested in equities has been subject, like all other such investments, to the fall in stock market values.
In the 33 years where real yields have been negative, the average gain from equities has been 2.3%; in the years when real yields were positive, the average gain was 6.2%.Another way of slicing up the data is to divide them into quintiles.
Similar(56)
Equities have been de-rating for several years.
While equities have been rallying, commercial property has been taking "a hell of a beating"*.
Admittedly, equities have been less stable over history; they are far more liquid.
Chinese equities have been on a bull run of epic proportions.
Context Counts Equities have been clobbered by the latest leg of the global financial crisis.
Equities have been bouncing around, but are generally down since April, albeit to different extents in different regions.
Japanese equities have been on fire for the past two months.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com