Not exact matches
«
If we assume extremely pessimistic
nominal earnings growth of 3 % over the coming decade and a compression in the price - earnings ratio to 10, equities would still deliver returns above current bond
yields.
If nominal GDP growth is going to be «lower for longer» then so will bond
yields.
If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend
yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend
yield of 4 percent (Hussman says that the dividend
yield on stocks has historically averaged about 4 percent), the expected
nominal return over ten years is 2.4 percent annually.
If bond
yields drop from 6 % to 5 %, bond buyers immediately grasp that their
nominal return will be lower.
For example,
if we assume extremely pessimistic
nominal earnings growth of 3 % over the coming decade and a compression in the price - earnings ratio to 10, equities would still deliver returns above current bond
yields.
If the initial dividend yield is 4 % and the nominal dividend growth rate is 5 % per year AND if the Stock A allocation is 80 % and the TIPS allocation is 20 %, the Continuing Withdrawal Rate is 4.95
If the initial dividend
yield is 4 % and the
nominal dividend growth rate is 5 % per year AND
if the Stock A allocation is 80 % and the TIPS allocation is 20 %, the Continuing Withdrawal Rate is 4.95
if the Stock A allocation is 80 % and the TIPS allocation is 20 %, the Continuing Withdrawal Rate is 4.95 %.
If I assume a dividend growth rate of 6 percent (about the long - run average *), the current S&P 500 dividend
yield of 2.1 percent (from multpl.com), a terminal S&P 500 dividend
yield of 4 percent (Hussman says that the dividend
yield on stocks has historically averaged about 4 percent), the expected
nominal return over ten years is 2.4 percent annually.
If so, then the
nominal yield when the Fed finishes normalizing interest rates will be around 4 %.
Real
Yields Another consideration is if TIPS yields are high or low relative to the real return on nominal bonds of the same mat
Yields Another consideration is
if TIPS
yields are high or low relative to the real return on nominal bonds of the same mat
yields are high or low relative to the real return on
nominal bonds of the same maturity.