Sentences with phrase «expected future returns»

This may not sound like much, but these low returns may actually be competitive with expected future returns on some other low risk options as detailed more in Article 6.2.

Many investors did expect future returns of this magnitude to continue!

You can also use the efficient frontier forecast tool to specify expected future returns for the assets.

Not paying attention to rising investment risks, or adjusting for lower expected future returns, are detrimental to both of those objectives.

That is, investors have pushed up prices, but they still expect future returns on risky assets to be positive.

As volatility pushes higher and expected future returns decline, investors are turning to income strategies to generate better long - run returns.

If CAPE is high due to high future EPS growth expectations or is high due to mechanical imprecision in earnings measurement because past earnings are artificially depressed, and hence less indicative of future cash flows, then a high CAPE ratio is fully compatible with high expected future returns.

You can find all sorts of predictions of expected future returns based on various factors, calculations, and models, but unfortunately, most of them point to a rate of return for both stocks and bonds in the next few years that is below historical averages.

School leaders that offered pre-kindergarten expected future returns in enrollment and academics, according to the study.

Calculating expected future return puts reasonable expectations on an investor's investments and helps plan for retirement or other needs.

Among other measures, they examined the «success rate» (cases where the portfolio did not run out of money) for different expected future return scenarios assuming 4 % of the portfolio value (inflation adjusted) is withdrawn annually for 30 years.

There are many ways of evaluating expected future returns and determining price relative to value, as we discussed in «Selecting a Valuation Method to Determine a Stock's Worth» (April 2014 AAII Journal).

Or if he would sell Coke to redeploy the proceeds into something with higher expected future returns that would trigger paying the defered tax liability and therefore lower IV which doesn't make much sense either.

I might be wrong, but as far as I am aware, there's no consensus on the Fed's model used to calculate the «expected future return of stocks,» which is why Hussman calculates it twice using two different metrics, and Duarte and Rosa use the average of 29.

We expect future returns to look different from the past, partly due to structurally lower interest rates.

Over the years, I've emphasized what I call the Iron Law of Valuation: the every security is a claim on an expected stream of future cash flows, and given that expected stream of future cash flows, the current price of the security moves opposite to the expected future return on that security.

Notice that the point where a security seems most enticing on the basis of realized past returns is also the point where the security is least promising on the basis of expected future returns.

As the price goes up, what investors considered «expected future return» only a moment before is suddenly converted into «realized past return.»

The CAPE is a tool to estimate our expected future returns from equities.

Taking on more equity risk when the expected future returns are lower than in the past and downside risks higher makes little sense to me.

However, finance models suggest the sum of of these two percentages to be your expected future return on investment.

We expect future returns to look different from the past, partly due to structurally lower interest rates.

If history is any guide, investors should expect future returns to be muted at best.

So, while it feels good to see stock prices of existing positions go up, the expected future returns decline.

I need to point out that the compound annual growth rate of 10.34 % in the historical data is not a number you should use for expected future returns.

The truth is, market risks and expected future returns are related.

After looking at this stock's valuation, yield, growth rate and expected future returns I feel confident that I'll be able to better allocate my capital.

However, finance models suggest the sum of of these two percentages to be your expected future return on investment.

The basic conclusion is that the expected future return from stocks is inversely related to the average investor stock allocation.

We can start to see why Bernstein predicts a -1 % return on bonds over the next 10 years as discussed in the «Expected future returns» subsection above.

Our conclusions about «what to invest in» based on a mindful assessment of historical and expected future returns and risks in

Are based on historical performance characteristics, which include the expected future return, the expected future volatility (risk) of the return, and how the returns of assets classes perform relative to each other.

Our conclusions about «what to invest in» based on a mindful assessment of historical and expected future returns and risks in Articles 6.1 and 6.2 include:

-- As I already mentioned, the expected future return on bonds is likely to be minimal at best, with the central tendency estimate at perhaps 2 % before inflation, and zero or less after inflation.

The lower the valuation the higher the expected future return (lower risk).

The higher the valuation the lower the expected future return (higher risk).

That results in shifting your expected future returns up by around 5 % per year compared to his!

It appears that John's algorithm takes into account the rise in the market during the 2005 - 2008 timeframe, and yours does not (as you stated, all else remaining the same, the higher the market is at any given point, the lower the expected future returns that can be for an economy).

«The equity risk premium is the expected future return of stocks minus the risk - free rate over some investment horizon.

Because GRN's a good example of a mistake too many investors make: No matter how confident you might be about a company's prospects, overpaying doesn't just reduce or even eliminate your margin of safety, it may also rob you of expected future returns.

When everyone is happy they expect future returns to be high and so they are willing to get fewer returns on their money today in order to buy into those greater returns tomorrow.