Sentences with phrase «poor subsequent returns»

As of last week, the Market Climate for stocks remained in the most negative 0.5 % of all historical observations, and was characterized by rich valuations, unfavorable market action, and a variety of hostile «Aunt Minnies» that are associated with poor subsequent returns.

Not exact matches

Only those who are historically uninformed believe that valuations have no relationship to subsequent returns, or place their faith in scraps of analytical debris like the «Fed Model» without examining their poor correlation with actual subsequent market returns.

We emphasize «historically reliable» because as in every bubble, there are numerous popular measures with quite poor correlation with actual subsequent market returns that Wall Street can offer to convince investors that valuations are just fine.

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.

This data suggests that we should modify the assumption that poor past returns, in and of themselves, reliably lead to strong subsequent long - term returns.