Sentences with phrase «weaker subsequent returns»

The correlation is negative because higher valuations imply weaker subsequent returns.

John Hussman at Hussman funds is careful to qualify the value of this analysis: «Rich valuation is strongly associated with weak subsequent returns, but only reliably so over periods of 7 - 10 years.

Not exact matches

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.

Notice that the positive relationship between monetary growth and subsequent market returns (a coefficient about +0.4) is weaker than the negative relationship -LRB--0.6) that initiated the monetary easing in the first place.

History suggests that subsequent returns have been weak when shares are purchased at higher - than - average multiples.

Note that the right scale on the following chart is inverted, so higher levels of valuation on the left scale (blue line) correspond to weaker levels of subsequent return on the right scale (red line).