Not exact matches
The only alternative to this view is to imagine that the collapses that followed valuation extremes like 1929, 1973, 2000, and 2007 somehow emerged entirely out of the blue, ignoring the fact that valuations accurately projected
likely full - cycle losses, and remained tightly correlated with total
returns over the
subsequent 10 - 12 year horizons.
On the basis of valuation measures most tightly related to actual
subsequent long - term market
returns, we also estimate that the S&P 500 is
likely to be lower 12 years from now, compared with current levels, though dividend income may push the total
return just over zero on that horizon.
The 40 - year agreement would
likely give the county a large payment up front, with diminishing
returns each
subsequent year.
Given his connection to T'Challa in the comics, it's
likely he will
return in
subsequent Black Panther films.
In contrast, I've often quoted the Shiller P / E (which essentially uses a 10 - year average of inflation - adjusted earnings) as a simple but historically informative alternative, but I should emphasize that we strongly prefer our standard methodologies based on earnings, forward earnings, dividends and other fundamentals, all which have a fairly tight relationship with
subsequent 7 - 10 year total
returns (see Lessons from a Lost Decade, The Likely Range of Market Returns in the Coming Decade, Valuing the S&P 500 Using Forward Operating Earnings, and No Margin of Safety, No Room for
returns (see Lessons from a Lost Decade, The
Likely Range of Market
Returns in the Coming Decade, Valuing the S&P 500 Using Forward Operating Earnings, and No Margin of Safety, No Room for
Returns in the Coming Decade, Valuing the S&P 500 Using Forward Operating Earnings, and No Margin of Safety, No Room for Error).
It is more accurate to argue that following poor 10 - year
returns, provided that valuations are depressed based on normalized earnings and the economy is
likely to grow at double digits rates of nominal growth - investors can probably anticipate higher
subsequent long - term
returns.
The value factor formed on B / P is
likely to load on low profitability / junk companies, whereas the aggregate valuation metric may be better at identifying quality and thus may do a better job of predicting the
subsequent return.