Sentences with phrase «at times of high valuations»
There are many who think of the risk that comes with investing in stocks at times of high valuations in a one - dimensional way.
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High, fixed stock allocations at times of high valuations are reckless.
This is only true when starting at times of high valuations.
He fails to distinguish the risk that comes from retiring at a time of high valuations and the risk that comes from experiencing a poor returns sequence.
As the bull market stretched on, more and more dubious claims about the long - term safety of stock purchases made at times of high valuation were put forward.
These switching algorithms are optimized for starting at times of high valuations.
Investors need to keep their risk levels roughly constant and the riskiness of stocks is far, far greater at times of high valuations.
Do All Really Bad Price Drops Happen at Times of High Valuations?
What I have a hard time getting a handle on is the extent of the lost - opportunity cost paid by investing heavily in dividend - payers at a time of high valuations.
In a whipsaw period like that which we have had from 1998 to the present, it makes a lot of difference, because many investments during the bubble era put fresh capital into the market at a time of high valuations, with buybacks predominating as valuations troughed.
For the retiree at times of high valuations, it is the difference between financial success and a busted retirement.
The Risk Evaluator shows that this number can drop to as low as 2.0 percent at times of high valuations and rise to as high as 9.0 percent at times of low valuations.
It's called Investors Who Lower Their Return Expectations At Times of High Valuations Should Lower Allocations Too.
What this shows is that, for retirements that begin at times of high valuations, a 4 percent withdrawal is a high - risk withdrawal.
12) The twelfth tenet of The New Buy - and - Hold is that the power of an effectively carried out buy - and - hold strategy is great enough that most of those employing effective strategies should maintain modest stock allocations even at times of high valuation.
The SWR is lower if you retire at a time of high valuations.
Since the risk associated with stock investing is greater at times of high valuations, you must lower your stock allocation at such times to Stay the Course in a meaningful way.
I wrote my response in Do All Really Bad Price Drops Happen at Times of High Valuations?
Still, the reality is that this is one of the big risks of strategies of going with high stock allocations at times of high valuations (when the risk of big price drops is greatest).
Juicy Excerpt: For an index to provide an average long - term return of 6.5 percent real, it must provide returns far above that at times of low valuations and far below that at times of high valuations.
Indexers who invest heavily in stocks at times of high valuations are doomed.
For an index to provide an average long - term return of 6.5 percent real, it must provide returns far above that at times of low valuations and far below that at times of high valuations.