This will be a short post but I cannot help but share this with you:
1) Chris Brigthman, Chief Investment Officer of Research Affiliates (no small feat to achieve that particular position at that company), stated recently that over the next decade a 60% large US stock/40% US bond portfolio is expect to return just 4.3% annually, and only 1.3% after inflation! That is crazy low returns. Investor, take heed.
2) From the WSJ recently, Robert Shiller's cyclically adjusted price/earnings ratio (known as the CAPE ratio) stands at 27.1. It's long term average is 16. SIXTEEN. Crazy high currently. Note the following, and definitely take heed: "today's valuation falls into the top tenth of historical observations, since data from the 1880s. When CAPE is in the top decile, as it is now, the S&P 500 subsequently averages about 4% annually for the next 10 years."
What do you think will happen? I personally only believe there are small pockets of value left. Otherwise, the only solution is to hold cash, or switch to real estate!
Passive Income Dude
1) Chris Brigthman, Chief Investment Officer of Research Affiliates (no small feat to achieve that particular position at that company), stated recently that over the next decade a 60% large US stock/40% US bond portfolio is expect to return just 4.3% annually, and only 1.3% after inflation! That is crazy low returns. Investor, take heed.
2) From the WSJ recently, Robert Shiller's cyclically adjusted price/earnings ratio (known as the CAPE ratio) stands at 27.1. It's long term average is 16. SIXTEEN. Crazy high currently. Note the following, and definitely take heed: "today's valuation falls into the top tenth of historical observations, since data from the 1880s. When CAPE is in the top decile, as it is now, the S&P 500 subsequently averages about 4% annually for the next 10 years."
What do you think will happen? I personally only believe there are small pockets of value left. Otherwise, the only solution is to hold cash, or switch to real estate!
Passive Income Dude
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