Market Pundits Claim Lower Return Decade Ahead: Are they Wrong?
Episode description
With the new decade came prediction after prediction trying to call what the next decade’s compounded growth rate will be. Many have said investors need to prepare for lower returns based on the numbers. But what if other prognosticators have a different view that is more bullish? We can’t predict future market returns, but we can talk through what they are looking at valuation and return wise to help you see both sides of it.
Why are CNBC and FOX Business guests saying to expect lower future market returns?
What is the CAPE Ratio?
What does the previous annualized 20-year return say about the next 10 years?
What role do interest rates have in stock valuation?
Just be long the market but be hedged or buffered
What is the equity risk premium?
What is the CAPM Capital Asset Pricing Model
Where are we currently valuation wise according to the Forward PE Ratio?
Mentioned in this Episode:
Of Dollars and Sense “Investors Fallacy” comparing past 20 year returns with subsequent 10 year returns https://ofdollarsanddata.com/the-investors-fallacy/
JP Morgan Guide to the Markets https://am.jpmorgan.com/us/en/asset-management/gim/protected/adv/insights/guide-to-the-markets
Free Chapter Broken Pie Chart: https://www.book2look.com/book/YcqUhbCrtN
Derek Moore’s book Broken Pie Chart https://www.amazon.com/Broken-Pie-Chart-Investment-Portfolio/dp/1787435547/ref=sr_1_1?keywords=broken+pie+chart&qid=1558722226&s=books&sr=1-1-catcorr
Contact Derek www.razorwealth.com