Sentences with phrase «expected return from the stock market»

That dwarfs what savings accounts are paying these days, though it is less than the long - term expected return from the stock market.

Not exact matches

Looking back through history, whenever value stocks have gotten this cheap, subsequent long - term returns have generally been strong.3 From current depressed valuation levels, value stocks have in the past, on average, doubled over the next five years.4 Not that we necessarily expect returns of this magnitude this time around, but based on the data and our six decades of experience investing through various market cycles, we believe the current risk / reward proposition is heavily skewed in favor of long - term value investors.

Until the developed stock markets retreat from record levels of valuation, we expect to have less portfolio exposure to equities going forward and more exposure to event driven situations such as liquidations and reorganizations that are not so dependent on the vicissitudes of the stock market for their investment return.

But given today's low interest rates (recently about 2.3 % for 10 - year Treasuries) and relatively rich stock valuations (Yale finance professor Robert Shiller's cyclically adjusted P / E ratio for the stock market recently stood at 29.2 vs. an average of 16.7 since 1900), it would seem to strain credulity to expect anything close to the annualized returns of close to the annualized return of 10 % for stocks and 5 % for bonds over the past 90 years or so, let alone the dizzying gains the market has generated from its post-financial crisis lows.

To filter out what he calls «short term noise in earnings,» and get a measure that affords a better fix on what kind of prospective returns one can expect from stocks, John calculated the market's P / E using the highest earnings posted over the preceding decade.

Similarly, within stocks, it's pretty clear that smaller companies and emerging markets are dicier propositions than blue chip companies, so it seems reasonable to expect some extra return — even if the extra return from small stocks isn't as great as history suggests.

The investment manager expects to hold an unhedged, fully - invested position in common stocks in environments where the expected return from market risk is believed to be high, and may reduce or «hedge» the exposure of the Fund's stock portfolio to the impact of general market fluctuations in environments where the expected return from market risk is believed to be unfavorable.

The investment manager expects to intentionally «leverage» or increase the stock market exposure of the Fund in environments where the expected return from market risk is believed to be high, and may reduce or «hedge» the exposure of the Fund's stock portfolio to the impact of general market fluctuations in environments where the expected return from market risk is believed to be unfavorable.

The three quality smart beta ETFs below have delivered respectable returns during the bull market over the last year and, as expected from stocks with strong fundamentals, steady longer term returns (3 - year).

So, if you can just show, for example, that the odds of a stock market crash are far higher in years when the P - E ratio is much higher than average (or for housing crashes the buy - rent, or price - household income ratio), or that the expected risk - adjusted long run return is much lower than average, or other «anomalies» (anomalous to the EMH) like this, then you can show that the EMH is substantially far from the truth.

Also there's an international impact too where people overseas are mostly buying in big coastal cities like SF, LA, NYC, etc. — re: oppt cost with stocks, one thing I keep hearing again and again is that in today's market with interest rates at record lows (98 % percentile compared to all of history), we can not just expect the same 6 - 7 % real return from stocks going forward, and that is will be a lot lower than that.

No matter where markets are on the continuum from very cheap to very expensive, traditional Advisors will make recommendations on the assumption that investors should expect 6.5 % inflation adjusted returns on stocks over all investment horizons.

The same economic pressures that are keeping interest rates low are also expected to depress returns from stocks and bonds, said Benjamin Tal, deputy chief economist at CIBC World Markets.

The first is the market premium (or equity premium), which is simply the expected excess return from stocks compared with risk - free investments like T - bills.

But with the levels of dividends, profit growth and valuation expected over the next five years it would suggest to me a 5 % to 7 % return from the overall stock market.