"The weak demand is reflecting uncertainty about the economy, higher unemployment, and expectations prices are going to fall further," Mr. Levy said.
OCX.NoDiv products do not have the discounted distribution expectations priced in, but the contracts are adjusted for these distributions on the morning of "ex date" by the then-known value of the distribution.
Many home builder stocks have priced in the expectation that prices will continue to soften.
Speculators are snapping up properties on the expectation that prices will continue to rise, as prices have nearly every year for more than a decade.
Mutual funds, by comparison, simply buy assets in the expectation that prices will rise.
Because the new inflation data reinforced that expectation, bond prices rallied and yields fell yesterday.
There should be no expectation that prices would be allowed to deviate, except temporarily, from the target.
In order to trigger a strong, consumer-led recovery, the government must instill the expectation that prices will rise.
We keep forgetting that as expectations and prices have risen so, too, have basic standards.
As Carney noted, "expectations that prices will continue to rise are now most marked outside London".
