Sentences with phrase «about future returns»

A big part of the problem is that determining what is tax efficient depends on assumptions about future returns, differences in tax rates, and the behaviour of tax shelters.
Investors fully understand that the average 30 - year past return of long bonds, currently north of 7 %, tells us nothing about the future return of long bonds.
In a bubble, those two factors become completely detached from reality, and expectations about future returns become increasingly reinforced not by fundamental data, but by price action alone.
In addition, borrowing and lending are forward - looking decisions: borrowers are making judgments about their future capacity to service debt, while lenders are making decisions about future returns.
I found your comments about the future returns potentially being a bit different with rising interest rates particularly helpful.
Some investors use recent price momentum as their sole source of information about future return prospects, but in doing so they run the risk of allowing entirely random price fluctuations to drive perceptions.
I think the 60/40 portfolio is alive and well, but I think your core point about future returns is worth exploring.
They need to be realistic about future returns and the balance of stocks to bonds, since a portfolio needs to last as long as possible without having to resort to drastic actions.
Past returns by themselves tell you almost nothing about future returns.
To me, the utility of valuation metrics is setting expectations about future returns.
Again, shifts in the Market Climate are not forecasts about future returns, except in the broadest terms of average return to market risk.
That is, past returns don't tell us much about future returns, but understanding that gold is ultimately just a commodity gives us a much more rational perspective of what types of returns we should expect going forward.
This Larry Swedroe article might make you a little less worried about future returns; I, for one, agree with his analysis that CAPE - 10 is probably overstating how overvalued (if at all) the stock market is right now:
And given the fact that trends in the XAU itself are uninformative about future returns, it also means that you are better off buying gold stocks on dips than to buy upside «breakouts».
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