Proper valuation of the equity market is necessary to project future stock returns.
Although those who wait long enough will eventually recoup losses on a diversified portfolio of stocks, buying stocks at or below their historical valuation is the best way to guarantee superior returns.
Nevertheless, there are persuasive reasons why the valuation of the market may in the future rise above the historical average.
This will lead to lower long-term returns on stocks but higher returns during the transition to a higher valuation.
Whether that transition takes place or not, stocks remain the most attractive asset class for long-term investors.
Reference:
Stocks for the Long Run
by Jeremy Siegel
Although those who wait long enough will eventually recoup losses on a diversified portfolio of stocks, buying stocks at or below their historical valuation is the best way to guarantee superior returns.
Nevertheless, there are persuasive reasons why the valuation of the market may in the future rise above the historical average.
This will lead to lower long-term returns on stocks but higher returns during the transition to a higher valuation.
Whether that transition takes place or not, stocks remain the most attractive asset class for long-term investors.
Reference:
Stocks for the Long Run
by Jeremy Siegel
stockmanmy
Buying stocks at or below their historical valuation is the best way to guarantee superior returns
an idiotic quote.
I tell you what is good advise, good article..............
A diversified equity portfolio, bought over time, will prove far less risky than... - investbullbear
https://klse.i3investor.com/blogs/kianweiaritcles/121572.jsp
Shakespeare: “The fault, dear Brutus, is not in our stars, but in ourselves.”
no need to wait for accountants to tell you that the "stocks at or below their historical valuation"....just buy and hold a diversified equity portfolio, bought over time,........................average valuation will do...what ever that word valuation means.......
2017-04-27 18:27