Sentences with phrase «predict subsequent returns»

We show that variations in valuation levels predict subsequent returns and that this relationship is robust across geographies, strategies, forecast periods, and our choice of valuation metrics.

In a series of articles we published in 2016,1 we show that relative valuations predict subsequent returns for both factors and smart beta strategies in exactly the same way price matters in stock selection and asset allocation.

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.

Not exact matches

Higher starting yields predict higher subsequent long - term returns.

Opportunity in Equities To many, the understanding that starting bond yields predict subsequent bond returns is intuitive and unsurprising.