Global Stock Market Valuations & Outlook
According to State Street Global Advisors and FT Remark, institutional investors expect bonds, stocks and overall portfolios to return 5.5%, 10% and 10.9% respectively. Under “normal” circumstances, these numbers would be optimistic, but these are anything but “normal” times.
One way to check these assumptions is to examine long-term valuations, such as the Shiller CAPE. Though not a perfect indicator, long-term valuations can give investors meaningful insight into future returns, and allow time for crucial preparation. As they say, “Hope for the best, plan for the worst.”
During this session, you will learn:
- Four common mistakes that investors are making in today’s market that are likely to hurt returns;
- The basic components of stock and bond valuation models, and the troubling implications for future returns of US stocks and bonds;
- How U.S. stocks appear to be a perilous asset class relative to historical levels and valuations versus the rest of the world; and,
- Why valuations in global equity markets suggest that allocating money abroad is likely a wise decision.
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