Our booklet, «What has worked in investing», shows that both in the US and internationally, basic fundamental value criteria produce better than
market returns over long periods of time.»
Zero stock
market returns over a long period of time would certainly not be unprecedented.
Not exact matches
«As a
long - term value investor, we remain cautious and recognise that to generate good real
returns over time, we have to be prepared for
periods of underperformance relative to the
market indices, some even for a stretch
of several years.»
And while NerdWallet emphasizes that past
market performance doesn't guarantee you'll earn the average historical
return of 10 % in the future, the value
of investing in stocks
over a
long period of time is still significant.
Actual results, including with respect to our targets and prospects, could differ materially due to a number
of factors, including the risk that we may not obtain sufficient orders to achieve our targeted revenues; price competition in key
markets; the risk that we or our channel partners are not able to develop and expand customer bases and accurately anticipate demand from end customers, which can result in increased inventory and reduced orders as we experience wide fluctuations in supply and demand; the risk that our commercial Lighting Products results will continue to suffer if new issues arise regarding issues related to product quality for this business; the risk that we may experience production difficulties that preclude us from shipping sufficient quantities to meet customer orders or that result in higher production costs and lower margins; our ability to lower costs; the risk that our results will suffer if we are unable to balance fluctuations in customer demand and capacity, including bringing on additional capacity on a timely basis to meet customer demand; the risk that
longer manufacturing lead
times may cause customers to fulfill their orders with a competitor's products instead; the risk that the economic and political uncertainty caused by the proposed tariffs by the United States on Chinese goods, and any corresponding Chinese tariffs in response, may negatively impact demand for our products; product mix; risks associated with the ramp - up
of production
of our new products, and our entry into new business channels different from those in which we have historically operated; the risk that customers do not maintain their favorable perception
of our brand and products, resulting in lower demand for our products; the risk that our products fail to perform or fail to meet customer requirements or expectations, resulting in significant additional costs, including costs associated with warranty
returns or the potential recall
of our products; ongoing uncertainty in global economic conditions, infrastructure development or customer demand that could negatively affect product demand, collectability
of receivables and other related matters as consumers and businesses may defer purchases or payments, or default on payments; risks resulting from the concentration
of our business among few customers, including the risk that customers may reduce or cancel orders or fail to honor purchase commitments; the risk that we are not able to enter into acceptable contractual arrangements with the significant customers
of the acquired Infineon RF Power business or otherwise not fully realize anticipated benefits
of the transaction; the risk that retail customers may alter promotional pricing, increase promotion
of a competitor's products
over our products or reduce their inventory levels, all
of which could negatively affect product demand; the risk that our investments may experience
periods of significant stock price volatility causing us to recognize fair value losses on our investment; the risk posed by managing an increasingly complex supply chain that has the ability to supply a sufficient quantity
of raw materials, subsystems and finished products with the required specifications and quality; the risk we may be required to record a significant charge to earnings if our goodwill or amortizable assets become impaired; risks relating to confidential information theft or misuse, including through cyber-attacks or cyber intrusion; our ability to complete development and commercialization
of products under development, such as our pipeline
of Wolfspeed products, improved LED chips, LED components, and LED lighting products risks related to our multi-year warranty
periods for LED lighting products; risks associated with acquisitions, divestitures, joint ventures or investments generally; the rapid development
of new technology and competing products that may impair demand or render our products obsolete; the potential lack
of customer acceptance for our products; risks associated with ongoing litigation; and other factors discussed in our filings with the Securities and Exchange Commission (SEC), including our report on Form 10 - K for the fiscal year ended June 25, 2017, and subsequent reports filed with the SEC.
Cash alternatives, such as money
market funds, typically offer lower rates
of return than
longer - term equity or fixed - income securities and may not keep pace with inflation
over extended
periods of time.
To be sure, while focusing on factor and smart beta strategies has historically,
over longer periods of time, earned higher risk - adjusted
returns relative to the broader
market, there have been stretches, even
long ones, when factor - based approaches underperformed (think value during the 1990s), according to data accessible via Bloomberg.
In the next post
of this series, we will show the actual outperformance
of the S&P SmallCap 600 versus the Russell 2000
over the
long term, the higher
returns and lower risk
over different
time periods, and through different bull and bear
market cycles.
Successful investing generates its
returns over very
long time periods, through the extremes
of the economic and
market cycles.
Stock
market ETFs
return close to 10 % (unadjusted)
over long periods of time, which will out - earn almost any other option and are very easy for a non-finance person to invest in (You don't trade actively - you leave the money there for years).
Midcap value should beat the
market over time, and clients that use me should be prepared for
periods of adverse deviation, en route to better
returns over the
long haul.
The most significant misperception about stock
market returns for most people is not understanding how consistent they have been
over long periods of time.
While an inverse product will go up if the
market falls, the
return is calculated on a daily basis, not
over a
long period of time as it would be with a standard ETF.
Broad equity
markets have more reliably provided
returns over long, 25 - year or more
periods of time in the last 150 years.
An income annuity is not an investment that provides you with a rate
of return over a fixed
period of time, like a CD.2 Rather, it» «s an income product that provides you with fixed monthly income that is guaranteed for life — no matter how
long you live — and no matter how the
markets perform.
«
Over the
long period of time, we've seen that the stock
market returns between 6 - 7 percent from a diversified portfolio,» she says — which beats many
of the investment options that proved more popular in our poll.