Sentences with phrase «valuations return to their normal levels»
In the event that stock valuations return to normal levels in days to come (a likely event, according to the historical data), many people are going to be hurt by the «highly misleading» (William Bernstein's words) SWR claims that have been put forward by proponents of conventional methodology SWR studies.
http://www.early-retirement-planning-insights.com/
When stock valuations return to their normal levels, which is about one - half of today's levels, the initial dividend yield of the S&P 500 will double to just under 4 %.
Not exact matches
On a wide range of historically reliable measures (having a nearly 90 % correlation with actual subsequent S&P 500 total returns), we estimate current valuations to be fully 118 % above levels associated with historically normal subsequent returns in stocks.
It is reasonable to assume that stock valuations will return to the normal level (around 13.5) or, consistent with history, fall to bargain levels (P / E10 below 8).
Similar to you, I actually have enough to carry us through retirement without much stock exposure, but my plan is to get back in when valuation ratios return to more historically normal levels.