Dec 1, 2016 #26 T Totoro Thinks s/he gets paid by the post Joined May 13, 2014 Messages 2,650 Location Utrecht Reverse to the mean. Same Bogle said that too, no Very curious what January will bring. It's bound to go a bit shaky.
Reverse to the mean. Same Bogle said that too, no Very curious what January will bring. It's bound to go a bit shaky.
Dec 1, 2016 #27 NW-Bound Give me a museum and I'll fill it. (Picasso) Give me a forum ... Joined Jul 3, 2008 Messages 35,712 Well, I have been waiting a long time for that "reversion to the mean". Where is it? Vanguard S&P Fund: up 29.2% in the last 5 years Vanguard Total Stock Ex US: down -4.7% in the same period
Well, I have been waiting a long time for that "reversion to the mean". Where is it? Vanguard S&P Fund: up 29.2% in the last 5 years Vanguard Total Stock Ex US: down -4.7% in the same period
Dec 1, 2016 #28 T Totoro Thinks s/he gets paid by the post Joined May 13, 2014 Messages 2,650 Location Utrecht Five great years in 2003 - 2007, long bad streak until today. Who knows? https://www.blackrock.com/investing...ation/asset-class-returns-one-pager-va-us.pdf With a CAPE of around 15 vs. 26 or so in the USA and other valuation measures showing similar differences, there is a price gap implied of say 30%-50%. Global Stock Market Valuation Ratios (Shiller PE, CAPE, PB...) And earnings growth seems to be going along at least as well as US companies too. Profitability also. So fundamentals are keeping up it seems. So every year it underperforms the gap widens ..
Five great years in 2003 - 2007, long bad streak until today. Who knows? https://www.blackrock.com/investing...ation/asset-class-returns-one-pager-va-us.pdf With a CAPE of around 15 vs. 26 or so in the USA and other valuation measures showing similar differences, there is a price gap implied of say 30%-50%. Global Stock Market Valuation Ratios (Shiller PE, CAPE, PB...) And earnings growth seems to be going along at least as well as US companies too. Profitability also. So fundamentals are keeping up it seems. So every year it underperforms the gap widens ..
Dec 4, 2016 #29 Lsbcal Give me a museum and I'll fill it. (Picasso) Give me a forum ... Joined May 28, 2006 Messages 8,811 Location west coast, hi there! Maybe the gap narrows by US stocks eventually going down? There aren't any laws of physics in stock markets. Pragmatism pays.
Maybe the gap narrows by US stocks eventually going down? There aren't any laws of physics in stock markets. Pragmatism pays.
Dec 4, 2016 #30 NW-Bound Give me a museum and I'll fill it. (Picasso) Give me a forum ... Joined Jul 3, 2008 Messages 35,712 OK. That means that by holding EM and international stocks, I will lose less.
Dec 4, 2016 #31 Lsbcal Give me a museum and I'll fill it. (Picasso) Give me a forum ... Joined May 28, 2006 Messages 8,811 Location west coast, hi there! NW-Bound said: OK. That means that by holding EM and international stocks, I will lose less. Click to expand... Good comeback.
NW-Bound said: OK. That means that by holding EM and international stocks, I will lose less. Click to expand... Good comeback.