Sentences with phrase «following average valuation»
Not exact matches
When valuations exceeded even 12 times normalized earnings (on our most comprehensive measure discussed above), seemingly «favorable» market action was followed by profound losses averaging -69.8 % on an annualized basis (generally reflecting a few weeks of vertical losses until enough damage was done to kick the market action measures negative).
https://www.hussmanfunds.com/
Valuations in 1949 and 1982 were like paying $ 13.70 for the future $ 100 cash flow, as valuations were consistent with subsequent annual S&P 500 total returns averaging 18 % over the following 12 - yeValuations in 1949 and 1982 were like paying $ 13.70 for the future $ 100 cash flow, as valuations were consistent with subsequent annual S&P 500 total returns averaging 18 % over the following 12 - yevaluations were consistent with subsequent annual S&P 500 total returns averaging 18 % over the following 12 - year period.
In the past, above - average stock market valuations were followed by below - average long - term returns.
In short, the strong historical performance of the market following consecutive Discount Rate cuts can be traced to the fact that these cuts typically occurred when stocks had already declined considerably, market valuations were below average (and usually very cheap), investment sentiment was widely negative, and the economy was already entrenched in well - recognized recessions.
And the next graph shows the average following returns for those various valuation percentiles.
Looking at listed companies in the US now, following the rise in equity valuations and borrowing for buybacks, it would be hard to characterize the average stock as undervalued, or cash rich.
, Income Stream Innovations, Expanded Allocator, Using Weighted Averages, Letters, Retirement Risk Evaluators, Valuations and Income Streams, Expanded Allocator Insights A, Inside the Box Thinking, Expanded Allocator Insights B, Expanded Allocator Insights C. Notes starting from March 25, 2007 Notes starting from April 18, 2007 covered the following topics: What about inflation?