Sentences with phrase «of future returns»

It is important to remember that past performance is not a guarantee of future returns as these depend on bonuses yet to be declared.

To be sure, past performance is not indicative of future returns and should never be the only reason to buy or sell a stock.

In other words, forward P / E ratios can be a good predictor of future returns for low uncertainty stocks but are quite inaccurate for high uncertainty stocks.

We see starting valuations as an indicator of future returns only in the long run.

Because we don't directly observe market expectations of future returns, we need a way to figure them out indirectly.

Furthermore, we were interested in how to best integrate our valuation metrics into a coherent statistical framework that would provide us with the best estimate of future returns.

That note in every stock's annual report: «Past performance is no indication of future returns» is just as valid with indexes.

Ultimately there is no substitute for having a model that can identify with precision the factors likely to be drivers of future returns.

Furthermore, I'm curious how one might analyze past returns to look at the uncertainty of future returns.

We see starting valuations as an indicator of future returns only in the long run.

What explains the most of the future returns of a portfolio is the allocation between asset classes.

Where did the prophets get the materials for their dreams of a future return?

So, just like if you were to ask for cash, you need to be willing to provide something in return — services, collateral, promise of future returns, etc..

Here's how stocks should deliver the 3 % real cost of capital, in the form of future returns.

That brings us to the third and final component of futures returns — interest income.

Establish a habit of keeping copies of all future returns and backup materials for at least four years after the end of the tax year.

I would happily take the over on your conclusions of the future returns.

The growth of our debt, income inequality, and monetary manipulation by central banks are all reasons to be skeptical of future returns.

So what level of future returns might be considered reasonable?

Just like past returns can't be a gauge of future returns, the yield itself means nothing as the stock price changes.

You look at the variation (standard deviation) of past returns, and assume that the variation of future returns will be similar.

The company does pay a 2.8 % dividend, which would represent the bulk of any future return basis utilizing earnings and the premium historical normal P / E ratio since 2007.

In other situations very low valuation may be the generator of future return.

Back end sales loads allow funds to take away a share of your future returns.

Return histories of crypto - assets are immature and may not be representative of their future return distributions.

I don't know that valuation, based say on a calculation of future returns sought, tells me very much about a company's ability to consistently pay dividends with growth.

We've probably borrowed 20 years of future returns to push prices to these levels.

In order to keep the compliance people happy, I'd like to remind you that past performance is no guarantee of future returns!

Though past performance is not indicative of future returns, many investors find it useful to evaluate the recent returns delivered by an exchange - traded product.

If anything it's an expectations tool, not a good predictor of future returns.

When combined properly, these key metrics are powerful indicators of future returns!

The examples in the post actually demonstrate how one might use past returns to estimate the uncertainty of future returns.

These challenges are sizeable, but dreams of future returns have encouraged many foreign firms to endure them.

There are also many factors that can impact the success of and returns from an MIE; past performance is not a prediction of future returns on your investment.

It is simple, the data goes back a very long way, and Smithers claims it to be statistically predictive of future returns.

«They give investors comfort, but comfort doesn't have anything to do with the predictability of future returns.»

- i.e. forecasts of future returns, volatilities or correlations are more harmful than helpful.

While many prognosticators may be saying «death to the 4 % rule» based on their prediction of future returns, most investors are going to be JUST FINE.

She relies on a database of 1,000 simulations of future returns to conclude that, 75 years from now, a Social Security trust fund portfolio that includes stocks will produce a healthy ratio of assets to benefits, while a trust fund consisting of only bonds will be completely exhausted.

Does that mean the CAPE is now worthless in its true role as a forecaster of future returns?

However, a simple price - to - earnings (P / E) ratio, whether based on a snapshot in time or a smoothed measure of earnings, can be more useful, providing some indication of the possible distribution of future returns, our analysis shows.

Third, academic research has found that valuation metrics, such as the earnings yield (E / P) or the CAPE 10 earnings yield, and valuation spreads have predictive value in terms of future returns.

Pros of investing in zero - coupon bonds: Certainty of future returns; low default risk in government STRIPS Cons of investing in zero - coupon bonds: Phantom taxation occurs if used in a regular investment account; no interest until maturity

Finally, metrics based on historical performance may say nothing of future returns, which is why analysis houses (e.g., Morningstar) examine additional factors, like shareholder friendliness, experience, and strategy to identify «funds with the highest potential of success.»

Fama and French singled out the first four factors as having the strongest predictive power of future returns.

As a result many investors expect unreasonably high rates of future returns.

According to Modern Portfolio Theory, asset allocation is the primary determinant of future returns and in the reduction of Read more about Sell your Bonds and Gold and Buy Dividend Growth Stocks Before it is Too Late -LSB-...]

(2) Past performance: I appreciate past performance does not guarantee future returns but wouldn't consistent returns over a sustained period of time [for actively managed funds] be an indicator of the fund manager's expertise is maximising the probability of future returns?