Not exact matches
If the
current outlook runs its course,
valuations will be ever
richer for both stocks and bonds, and central bank tightening may be more meaningful.
To expect normal or above - average long - term returns from
current prices is to rely on the market bailing out the
rich overvaluation of today with extreme bubble
valuations down the road.
All
rich valuations do is provide a window of opportunity for
current holders to obtain a wealth transfer from buyers, but the only way to realize that is by selling.
With regard to the
current market cycle, the period since 2000 has been unique in that it has reflected an environment of persistently
rich valuations.
Water stocks are a safe bet much like utilities, and for that reason, they're no get
rich quick play, especially at their
current valuations.
When investors use a
richer toolkit that combines past performance and
current relative -
valuation levels, the decision will not always be to fire the winners and hire the losers, or vice versa.