That makes their conclusion worthless when (eg) interest rates are far
lower than their historical average.
It also said that future returns from value stocks will likely be
lower than the historical average.
To sum up, although it's pretty clear we should expect
lower than historical average returns for stocks, there is little evidence for a strong downward force on stock returns due to expected interest rate increases that is anything like the bond situation.
If a business is trading for
lower than its historical average price - to - earnings ratio, it is likely trading at fair value or better.
«Of the 17 responses, all suggest that the extent will remain
lower than the historical average (i.e., mean 1979 — 2000 September values) of 7.0 million square kilometers.
We expect another strong year of property performance, with rent growth outpacing inflation in most markets and vacancy remaining
lower than historical averages.
I would argue that the first - time buyer share is
lower than historical averages because access to mortgage credit is particularly tight for younger buyers.
Not exact matches
World growth will remain
low on
average but negative in the UK and Europe; price inflation will remain sufficiently subdued for a while longer so as to impose no constraint on monetary expansion; central banks will sustain a regime of negative real interest rates and rapid monetary expansion; the risk of a eurozone collapse is off the table for now; finally, stock markets should continue to perform better
than expected, even though the four - year old cyclical bull market is long by
historical standards.
As the above
historical chart comparing BTC and LTC
average transaction fees highlights, Litecoin's transaction fees have been historically much
lower than bitcoin's.
The favorable market performance associated with many
historical economic expansions is fully accounted for by 1) favorable post-recession valuations, with the S&P 500
averaging less
than 9 times prior peak earnings at the recession
low, expanding to just over 11 times peak earnings in the first year of the bull market, and 2) favorable trend uniformity, which typically emerges almost immediately in the form of a powerful breadth thrust off of a bear market
low, and is confirmed within a few weeks by much broader trend uniformity.
According to Brian, not only is the stock's forward P / E ratio of 15.0 much
lower than its
historical norm of 19.1, but its current dividend yield of 2 % is nearly double the company's 22 - year
average yield of 1.2 %.
To overcome this discrepancy, the author extends the
average relation of the NTM P / E being
lower than the TTM P / E by 24 %, as observed from 1976 to 2003, to the entire 140 - year
historical period.
For instance, the blue dot on the value factor scatterplot suggests that prior to March 2016 the valuation level of 0.14 — meaning the value portfolio was 14 % as expensive as the growth portfolio measured by price - to - book ratio, and
lower than the
historical norm of 21 % relative valuation — would have delivered an
average annualized alpha of 8.1 % over the next five years.
Currently, there is clear evidence that future expectations should be significantly
lower than the long term
historical averages.
However, this does represent a
lower rate of increase
than the
historical average — China's
average annual growth rate for coal consumption from 2000 to 2013 was 8.8 percent.
NAR expects the rate on a 30 - year fixed rate mortgage to
average 6.5 percent in 2006, about one percentage point higher
than in 2003 and 2004, but not much above the expected
average for 2005 of 5.9 percent — all extremely
low by
historical standards.
Even through property prices are very high — and cap rates are very
low — by
historical standards,
average cap rates are still significantly higher
than the interest rates available for financing.