Currently, there is clear evidence that future expectations should be significantly lower
than the long term historical averages.
Not exact matches
Every defense of current P / E ratios must assume either a higher
long -
term growth rate
than is evident from
historical data, or it must assume that investors are willing to hold stocks for a
long -
term return of substantially less
than 10 %.
For equity investors who focused on their
longer -
term asset allocations instead of panicking, the roller - coaster ride in equities is now probably little more
than historical noise.
This leaves roughly 1.4 % of
historical long -
term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster
than the 5.7 % average rate of earnings growth).
Rather
than using complex computer models to estimate the effects of greenhouse - gas emissions, Lovejoy examines
historical data to assess the competing hypothesis: that warming over the past century is due to natural
long -
term variations in temperature.
Or even better, «stories could place
long -
term growth in
historical perspective, telling voters whether it was better or worse
than average.»
Since 1996, the US CAPE ratio has been above its
long -
term simple average (16.6) 96 % of the time, and above 24, roughly one standard deviation above its
historical norm, more
than two - thirds of the time.
From the table above, we are able to see that the
long -
term historical duration estimate correctly projected the direction of the period return; but in all three time periods, the actual return was of greater magnitude
than the expected return.
This leaves roughly 1.4 % of
historical long -
term returns which can be attributed to past expansion in the Price / Earnings multiple (i.e. over the past 50 years, prices have grown somewhat faster
than the 5.7 % average rate of earnings growth).
There's 140 years of
historical data showing that those who purchase the U.S. Total Stock Market Index using research - based strategies obtain FAR higher
long -
term return at GREATLY reduced risk
than do those following pure Get Rich Quick strategies.
From what I see from the Global
Historical Climatology Network (GHCN) of land temperatures and the Comprehensive Ocean - Atmosphere Data Set (COADS) of SST data, temperatures there were higher around the 1930's
than now, and there is not much
long term warming trend, except for the past few years.
When I say
historical long -
term predictions, I am talking about predictions hopeully for more
than one climate cycle.
In
terms of
longer timescales (decadal to century), once the focus becomes regional rather
than global,
historical and paleo data becomes more useful
than global climate model simulations (no matter what type of «right - scaling» methods are attempted).
This demonstrates that the
long -
term historical record, rather
than events in a single year, is much more important for understanding what is happening.
The comment to Table 2 notes: «In general, these
historical gauges were designed to monitor the sea level variability caused by El Niño and shorter -
term oceanic fluctuations rather
than long -
term sea level change, for which a high level of precision and datum control is required.»
The Ca properties will likely make more over the short
term and even perhaps over the
long term, but their price volatility is much higher
than the Midwest properties and the annual cash flow much more modest based either FMV or
historical cost.