... The key point of this article is that relying solely on a passive strategic portfolio designed to produce near - benchmark
returns in a secular bear market will do nothing but guarantee that clients will underperform long - term expectations for an extended period of time and make it likely that they will fail to achieve their financial planning goals.
Not exact matches
The
market's valuation
in 2000 was so extreme that the resulting
secular bear has the potential to be more extended than others, unless the
market was suddenly to collapse to valuations near those where historical
secular bulls have started (where stocks have typically been priced to achieve 10 - year prospective
returns near 20 % annually).
If we include the additional assumption that we are already
in a
secular Bear Market, then the BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predicti
Bear Market, then the BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predic
Market, then the
BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predicti
BEAR MARKET STOCK - RETURN PREDICTOR will give more accurate predic
MARKET STOCK -
RETURN PREDICTOR will give more accurate predictions.
It may seem implausible that stocks could have gone this long with near - zero
returns, and yet still be at valuations where other
secular bear markets have started — but that is the unfortunate result of the extreme valuations that stocks achieved
in 2000.
If you think we're
in a long - term,
secular bear market, with likely
returns well below my 6 % example, this strategy is for you.