If you have 401k assets, are a financial professional or individual investors looking to construct portfolios and not move monies very often, and looking to beat inflation over an extended period of time, the chart below is well worth being aware of.
So says Chris Kimble (blog.kimblechartingsolutions.com) in his latest post* entitled Long lasting bull markets start from here? Ave 10-year returns are 2%!
[The following is presented by Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com and www.munKNEE.com and may have been edited ([ ]), abridged (…) and/or reformatted (some sub-titles and bold/italics emphases) for the sake of clarity and brevity to ensure a fast and easy read. This paragraph must be included in any article re-posting to avoid copyright infringement.]
Kimble goes on to say in further edited excerpts:
The chart below, created by Doug Short, reflects the average of four market valuation indicators over the past 100 years.
Q: How many long lasting bull markets have started from the current valuation level over the past 100 years?
A: So far, none.
Q: What is the average 10-year stock market return when valuations are at these levels?
Q: Do the above charts mean that the stock market can’t rally?
A: No, the market could rally for a long-time from here!
Q: Does that mean one should be bearish?
A: No, but….
[Editor’s Note: The author’s views and conclusions in the above article are unaltered and no personal comments have been included to maintain the integrity of the original post. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.]
(The articles posted on munKNEE.com deliberately present a diverse perspective on subjects discussed. Below are links, with introductory paragraphs, to a variety of related articles designed to help you become truly informed regarding both sides of the issues so that you can assess the merits of all points of view and come to your own conclusion.)
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