Posts Tagged ‘valuations’
The Death of 60/40: What’s Next?
Welcome to the last of the series “The Death of 60/40.” I have written in this series on how the 60/40 portfolio was justifiably a staple in investor portfolios based upon past performance. By any measure of financial history, the last four decades were one of the most significant periods of asset growth price ever.…Read More
The Death of 60/40: Bonds
Welcome back to another week of “The Death of 60/40.” For the last two weeks, I’ve described how stock valuations play a role in defining future expected returns – and how today’s stock market valuations portend a forthcoming era of low returns. “But isn’t the reason we allocate 40% to bonds, is to help offset…Read More
The Death of 60/40: Starting Valuations Matter… A Lot (Part II)
Welcome to week four of the series The Death of 60/40. Today, we’ll continue to explore stock market valuations and what they portend. John Bogle, the late, legendary founder of Vanguard Funds used a simple formula to determine future market returns: Future Market Returns = Dividend Yield + Earnings Growth +/- Change in P/E ratio. …Read More