Sentences with phrase «returns over the following decade»

Moderate interest rates were associated with a whole range of subsequent returns over the following decade, and we know that those outcomes were 90 % correlated with the level of valuations at the beginning of those periods (on reliable measures such as market cap / GDP, price / revenue, Tobin's Q, the margin - adjusted Shiller P / E, and others we've presented over time - see Ockham's Razor and the Market Cycle).

Following the worst 10 - year returns for the S&P 500, the average cyclically - adjusted P / E was just 12, GDP growth over the following decade average 10.5 %, earnings growth averaged 8.63 %, and the S&P 500 return over the following decade averaged 11.33.

The most extreme among those points are 1964 (when actual market returns over the following decade were lower than expected), 1988 - 1990, and 2005 (when actual market returns over the following decade were higher than expected).

Not exact matches

How's this for a gripping corporate story line: Youthful founder gets booted from his company in the 1980s, returns in the 1990s, and in the following decade survives two brushes with death, one securities - law scandal, an also - ran product lineup, and his own often unpleasant demeanor to become the dominant personality in four distinct industries, a billionaire many times over, and CEO of the most valuable company in Silicon Valley.

When you look back on this moment in history, remember that S&P 500 returns had never materially exceeded zero over the decade following similar valuations.

Depressed interest rates were typically associated with weak market outcomes over the following decade, largely because investors reacted to depressed interest rates with yield - seeking speculation - driving valuations up and driving subsequent prospective returns down.

That undershoot created a point of enormous undervaluation for the market (resulting in projected and actual total returns for the S&P 500 above 15 % annually over the following decade).

The chart below presents the two versions of the «equity premium» along with the annual total return of the S&P 500 over the following decade.

For example, if we choose to believe that long - term investors will be sustainably happy to achieve long - term returns of 3.5 % annually over the coming decade, then it follows that the S&P 500 is fairly valued here.

It subsequently rose 10-fold over the following decade, netting Berkshire 26 % annual returns on that investment over that time.

On a cyclically adjusted earnings basis (where profits are averaged over the prior decade), the average cyclically adjusted P / E ratio following periods of poor long - term returns was 12.

The chart below presents the two versions of Hussman's calculation of the equity risk premium along with the annual total return of the S&P 500 over the following decade.

Note that there are a few points where the estimate of prospective market returns would have differed from the actual market returns achieved by the S&P 500 over the following decade.

In our view, your goal as an investor, particularly if you follow a conservative investing strategy like the one we recommend, is to make an attractive return on your investments over a period of years or decades, but with lower risk.

The title has gained somewhat of a cult following over the decades, but it has never returned to the spotlight in an official manner.