After that, managers stretch
their willingness on valuations.
Not exact matches
Comments: «In 2013, it will likely be the change in
valuation that drives most of the performance of stocks, and the sentiment shift and
willingness to take
on risk reflected in that movement will be meaningful for bonds as well.
Whether or not the IPO market picks up speed, and when, will depend
on the overall performance of the stock market, the performance of other companies that have recently gone public, and the
willingness of those companies waiting in the wings to take significant haircuts
on their
valuations.
Still, even in an environment where the market trades in a range of high
valuation, it is appropriate to hedge exposure to risk at points where conditions are overvalued, overbought, and overbullish, and to establish more constructive exposure when conditions are overvalued, but oversold
on a short - term basis (provided that the broad tone of market action still indicates a general
willingness of investors to speculate).
With
valuations extreme, and market action showing both a lack of trend uniformity and a lack of momentum in breadth (advancing issues versus declining issues), we have no
willingness to take
on market risk here.
The
valuations are based
on assessments of a community's
willingness and ability to pay to avoid risks of death.
Grantham described his
willingness to suspend some concerns about
valuation as an «experiment in going with the flow,» but added that this was personal, and» emphasized the caveat that more serious, risk - averse, long - term investors would not want to play fast and loose with a market then worth only 900
on the S&P.
A
willingness to do research and analysis is a common theme of «The Warren Buffets Next Door» (John Wiley & Sons, 2011), along with an emphasis
on a
valuation.
In short, there seems to be no limit
on valuations, yet there is a sanity
on the
willingness to fund.