It's awareness of historical context that is important in terms of elevating risk management at any point in time,
since equity market valuations are guideposts.
Not exact matches
We utilized the arm's - length transactions of our
equity securities in the secondary
market since our most recent common stock
valuation date, February 25, 2013, and the tender offer completed on March 4, 2013 to estimate the fair value of our common stock.
We utilized the arm's - length transactions of our
equity securities in the secondary
market since our most recent common stock
valuation date, May 15, 2013, to estimate the fair value of our common stock.
Despite my admitted stumble in the half - cycle
since 2009, it's perplexing that the
equity market is at the second greatest
valuation extreme in the history of the United States, on what are objectively the most durably reliable
valuation measures available, but it has somehow become an affront to suggest that this will not end well.
We've owned emerging
market equities since late last year due to attractive
valuations already.
Unlike other
valuation proxies, the Rule of 20 has been reliable in all types of
equity markets and economic environments
since it incorporates inflation in the
valuation process (click on chart to enlarge).
Despite my admitted stumble in the half - cycle
since 2009, it's perplexing that the
equity market is at the second greatest
valuation extreme in the history of the United States, on what are objectively the most durably reliable
valuation measures available, but it has somehow become an affront to suggest that this will not end well.
On the contrary,
since the 1940's, the ratio of
equity market value to GDP has demonstrated a 90 % correlation with subsequent 10 - year total returns on the S&P 500 (see Investment, Speculation,
Valuation, and Tinker Bell), and the present level is associated with projected annual total returns on the S&P 500 of just over 3 % annually.
«Yes it's the worst bear
market since 2000 - 02, and stocks are trading at
valuations not seen in decades, but
equities will come back.»