Sentences with phrase «time of high valuations»

There are many who think of the risk that comes with investing in stocks at times of high valuations in a one - dimensional way.

Still, if you have no idea of how well your investments are likely to perform, rebalancing does protect you a little bit on the downside in times of high valuations.

This is not true during times of high valuations such as today.

My research has shown that switching (stock allocations) is superior when starting from times of high valuations, but not when starting at times of normal and bargain level valuations.

High, fixed stock allocations at times of high valuations are reckless.

The balanced fund does better during times of high valuations.

The result: a warning about earnings growth in times of high valuations.

Price drops that are deep enough and lasting enough to cause a problem only occur starting from times of high valuations.

The news is good EXCEPT during times of high valuations.

Latch and Hold retains the substantial advantage of switching over fixed allocations in times of high valuations.

My research had previously shown that switching (stock allocations) is superior when starting from times of high valuations, but not when starting at times of normal and bargain level valuations.

This is only true when starting at times of high valuations.

Rebalancing helps a little in times of high valuations (low 100E10 / P) and hurts in times of low valuations (high 100E10 / P).

What I have a hard time getting a handle on is the extent of the lost - opportunity cost paid by investing heavily in dividend - payers at a time of high valuations.

It has merit at times of high valuations.

As the bull market stretched on, more and more dubious claims about the long - term safety of stock purchases made at times of high valuation were put forward.

Stocks are extremely risky a times of high valuations (like the time - period from January 1996 through September 2008) and not at all risky at times of moderate or low valuations.

These switching algorithms are optimized for starting at times of high valuations.

The upside potential of a 100 % stock portfolio does not balance the downside risk in times of high valuations (P / E10 = 17 and above).

In a whipsaw period like that which we have had from 1998 to the present, it makes a lot of difference, because many investments during the bubble era put fresh capital into the market at a time of high valuations, with buybacks predominating as valuations troughed.

He fails to distinguish the risk that comes from retiring at a time of high valuations and the risk that comes from experiencing a poor returns sequence.

As described in my introduction to the concept of the MCTWI, in times of high valuation your stock market investments are actually worth less than their current price.

Investors need to keep their risk levels roughly constant and the riskiness of stocks is far, far greater at times of high valuations.

For the retiree at times of high valuations, it is the difference between financial success and a busted retirement.

Still, the reality is that this is one of the big risks of strategies of going with high stock allocations at times of high valuations (when the risk of big price drops is greatest).

There are exceptions, especially now, during a time of high valuations.

[Note: HSWR50T2 is a better choice than HSWR80T2, which has 80 % stocks, in times of high valuation.]

The Risk Evaluator shows that this number can drop to as low as 2.0 percent at times of high valuations and rise to as high as 9.0 percent at times of low valuations.

Latch and Hold retains the advantage of switching versus fixed allocations in times of high valuations.

As described in my introduction to the concept of the MCTWI, in times of high valuation (like today) your stock market investments are actually worth less than their current price.

It's called Investors Who Lower Their Return Expectations At Times of High Valuations Should Lower Allocations Too.

Juicy Excerpt: For an index to provide an average long - term return of 6.5 percent real, it must provide returns far above that at times of low valuations and far below that at times of high valuations.

Indexers who invest heavily in stocks at times of high valuations are doomed.

Unfortunately, this is a time of high valuations.

For an index to provide an average long - term return of 6.5 percent real, it must provide returns far above that at times of low valuations and far below that at times of high valuations.

As described in the post where I introduced the concept of the MCTWI, in times of high valuation your stock market investments are actually worth less than their current price.

By Year 20, when you already have a large balance, it makes a lot of sense to cut back on stocks in times of high valuations, especially when P / E10 exceeds 20.0.

What this shows is that, for retirements that begin at times of high valuations, a 4 percent withdrawal is a high - risk withdrawal.

if the allocation he chooses makes sense for a time of high valuations, he is going with the wrong stock allocation at times of low and moderate valuations.

The SWR is lower if you retire at a time of high valuations.

Since the risk associated with stock investing is greater at times of high valuations, you must lower your stock allocation at such times to Stay the Course in a meaningful way.

Fixed allocations underperform during times of high valuations.

It helps a little bit during times of high valuations (P / E10 of 17 or higher).

12) The twelfth tenet of The New Buy - and - Hold is that the power of an effectively carried out buy - and - hold strategy is great enough that most of those employing effective strategies should maintain modest stock allocations even at times of high valuation.

Rebalancing is helpful during times of high valuations.

Do All Really Bad Price Drops Happen at Times of High Valuations?

I wrote my response in Do All Really Bad Price Drops Happen at Times of High Valuations?