Search found 2742 matches

by lazyday
Wed Jun 28, 2017 5:40 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

But if your target is 4% and bonds paid that much, wouldn't a prudent investor go 100% bonds ? What's the point in assuming unnecessary risk ? Incidentally, if bonds paid 4% we wouldn't see P/E over 25 but for a short span of time. Some might be deciding how to invest right this very moment, and re...
by lazyday
Wed Jun 28, 2017 5:30 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

RA, for the record, recommends 0% allocation to US stocks, regardless of the risk level of your portfolio (feel free to confirm by viewing their recommended portfolio at varying risk levels). I haven't looked at their portfolios before so checked this out. Choosing the "Efficient" portfol...
by lazyday
Wed Jun 28, 2017 12:57 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

There were "no earnings" in 12 months across 2008-09. Those are still in the CAPE formula. I understand paying for the sins of our fathers, but I'm not gonna calculate my P/E based on their earnings and my prices. OK I see what you mean now. If you remove that year from CAPE, then you sho...
by lazyday
Wed Jun 28, 2017 12:48 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

You realize that CAPE still has one year with no earnings inside, don't you ? I though we agreed on it not being a very relevant parameter I don't follow. What's the significance of the missing most recent earnings data? I don't agree that CAPE isn't very relevant, I think it's important how much y...
by lazyday
Wed Jun 28, 2017 12:37 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Until ~1985 CAPE has oscillated around 15. Past that it has oscillated around 25. Have returns decreased ? Some time it is different and there are plenty of examples Simple predictions like yield+growth do not assume that CAPE will return towards 15, they assume that CAPE will stay the same. So we ...
by lazyday
Wed Jun 28, 2017 12:24 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Only if the business did not change in the past 10 years. Apple Inc. 10 years ago was in the personal computers business, today they do phones. If you expect earnings to grow faster in the future than in the past, that boosts expected return and could justify paying more. But I wouldn't want to mak...
by lazyday
Wed Jun 28, 2017 12:00 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Nobody knows enough to predict anything accurately. That's true, but if you're buying a business with average growth, and pay triple what it earned over the last decade after adjusting for inflation, then you shouldn't expect much return on your investment. If you buy the US market today with CAPE ...
by lazyday
Wed Jun 28, 2017 9:47 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

I found 3 different sites that use CAPE valuation to estimate future return of US stock, and those estimates range from 0% to -1.4% real. Are any of the 3 worth sharing? I like RA and AQR, both of which predict above 0% for US. GMO doesn't give methodology but I still look at their predictions. Tho...
by lazyday
Mon Jun 26, 2017 4:55 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Taylor,

It might be in this book: “Reducing the Risk of Black Swans: Using the Science of Investing to Capture Returns with Less Volatility.”

Mentioned by Larry here: http://www.etf.com/sections/index-inves ... nopaging=1
by lazyday
Mon Jun 26, 2017 1:46 pm
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Kitces found that 30 year returns were only impacted up or down by about 1% based on historic high or low CAPE values, with significant variation in the actual returns. From your link: .... the chart below shows the 30-year average annual compound growth rates for every starting year going back to ...
by lazyday
Mon Jun 26, 2017 11:24 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

[lazyday snipped] Bonds are as "overvalued" as stocks are. This is quite the conundrum. If stocks are overvalued and bonds are too, the only safe asset left is cash, but that's not safe, either, due to inflation Some people think long term nominal bonds are expensive today, but you don't ...
by lazyday
Mon Jun 26, 2017 11:16 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Changing your AA based on market conditions is a bad reason. For the most part I agree with you, but I think it may help to have an eye on valuations when considering AA decisions. People often make excuses to increase risk after risk assets have done well and are expensive, or decrease risk when t...
by lazyday
Mon Jun 26, 2017 7:11 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

Just saw this: I'm at about 90% of my desired accumulation for life. I'm not too greedy...I just want enough money so I don't starve in my old age, have a decent place to live, etc. Ok, maybe going from 60/40 to 30/70 isn't extreme for you, like I said above. If you're already close to your goal and...
by lazyday
Mon Jun 26, 2017 6:54 am
Forum: Investing - Theory, News & General
Topic: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry
Replies: 129
Views: 7766

Re: Yes, This Is Market Timing: If the CAPE Goes Above 30, Bring on the Larry

The two times the CAPE has gone over 30, it's resulted in a drastic drawdown. I believe that both times, real interest rates were higher than they are today. So from an equity risk premium perspective, valuations aren't as extreme as it might look from your chart. A few people even argue that equit...
by lazyday
Sun Jun 25, 2017 5:50 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with 100% US Stocks?
Replies: 35
Views: 2406

Re: Anything wrong with 100% US Stocks?

finite_difference wrote:
lazyday wrote:If Bogle told you to jump off a cliff, would you do it?

I'd think about it.


HA! :D

I like Bogle a lot, though my two favorite gurus are Bill Bernstein and David Swensen. As you suggest, I give anything they say serious consideration. Still reject much of it.
by lazyday
Sat Jun 24, 2017 4:39 am
Forum: Investing - Theory, News & General
Topic: Anything wrong with 100% US Stocks?
Replies: 35
Views: 2406

Re: Anything wrong with 100% US Stocks?

If Bogle told you to jump off a cliff, would you do it?
by lazyday
Wed Jun 21, 2017 2:05 pm
Forum: Investing - Theory, News & General
Topic: Argentina issuing 100-year bond.
Replies: 64
Views: 5615

Re: Argentina issuing 100-year bond.

Unless such bonds have very good investment perks, it's hard for me to fathom many people wanting to buy a product that won't mature until their currently non-existent grandchildren or great-children are elderly adults. I might consider purchase of a US Treasury of 50 or 100 year maturity. Though p...
by lazyday
Wed Jun 21, 2017 9:22 am
Forum: Investing - Help with Personal Investments
Topic: Cap One CD in a VG brokerage account
Replies: 9
Views: 627

Re: Cap One CD in a VG brokerage account

Until someone with experience shows up, something I would try: pretend you want to buy a secondary market CD from Vanguard and look at the yields available for CDs similar to yours. You may need to take a tiny bit less than that.
by lazyday
Wed Jun 21, 2017 9:05 am
Forum: Investing - Theory, News & General
Topic: "Waiting for the Market to Crash is a Terrible Strategy"
Replies: 27
Views: 4312

Re: "Waiting for the Market to Crash is a Terrible Strategy"

...historically, once prospective returns have dropped below about 7.5%, investors could have adopted what I've called a "Rip van Winkle" strategy: just going to sleep until stocks dropped by at least 30% or moved back to prospective returns above 10% - a strategy that would have historic...
by lazyday
Wed Jun 21, 2017 8:46 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Equal Weighting Not So Magical
Replies: 3
Views: 796

Re: Larry Swedroe: Equal Weighting Not So Magical

Maybe we should be impressed that RSP didn’t have negative alpha after trading costs and expenses. Maybe an index designed to reduce trading and a fund with a lower ER would have had statistically significant alpha. At least in comparison to market cap weighted funds with the same factor exposure. I...
by lazyday
Tue Jun 20, 2017 12:56 pm
Forum: Personal Finance (Not Investing)
Topic: Ally no penalty 11 month CD rate increased to 1.50% this morning
Replies: 68
Views: 7680

Re: Ally no penalty 11 month CD rate increased to 1.50% this morning

Was considering moving IRA money to Ally but someone said that it's not available in an IRA. Looks like that's true: Help Center What types of CDs do you offer? We offer a variety of CD options to meet your needs: High Yield CD – terms range from 3 to 60 months. Raise Your Rate CD – 2- and 4-year te...
by lazyday
Sun Jun 18, 2017 6:22 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 37
Views: 4503

Re: Ally Bank No penalty CD for parking cash, is there a catch?

However this rep also said that I wouldn't be able to redeem a CD online and then buy another with it the same day, which apparently contradicts some previous posts in this thread. Like you said, someone needs to test it. :) I have a small 5 year cd to use in case I run out of cash. If I ever break...
by lazyday
Sun Jun 18, 2017 6:13 am
Forum: Investing - Help with Personal Investments
Topic: Thinking of changing my international allocation
Replies: 19
Views: 1440

Re: Thinking of changing my international allocation

My current international stock allocation is 45%. I think I will change it to the 40% suggested by Vanguard. Wouldn't it also matter what your stock/bond allocation is? If you own no foreign bonds and your 45% international is only 15% of the total portfolio, then according to Swensen you may benef...
by lazyday
Sat Jun 17, 2017 10:49 am
Forum: Investing - Theory, News & General
Topic: Favorite Feature of Vanguard Website?
Replies: 64
Views: 4687

Re: Favorite Feature of Vanguard Website?

I avoid using adblockers with bank and broker websites. I don't trust them to display complicated pages properly. I'd be afraid of making a mistake on a transaction. Though I do tend to be overly cautious about such things, maybe it's not a significant risk. I think some people have posted about us...
by lazyday
Sat Jun 17, 2017 6:25 am
Forum: Investing - Theory, News & General
Topic: Anyone else gotten totally bored with investing?
Replies: 103
Views: 9379

Re: Anyone else gotten totally bored with investing?

I like to own securities that don't need tending to, so that when I get bored I can take a year off and not think about it. These days there's decent index funds for all the odd kinds of equity I want to own, so I'm slowly selling off my individual stocks which is nice. Simplicity is starting to loo...
by lazyday
Sat Jun 17, 2017 6:03 am
Forum: Investing - Help with Personal Investments
Topic: Direct CD vs. Brokered CD
Replies: 18
Views: 1483

Re: Direct CD vs. Brokered CD

I bought a 5 year cd on the secondary market 2 weeks back and got 2.509% as my rate. The secondary market yields about .15 to .20% higher than new offerings. My plan is to continue to buy 5 year cd's every time I get the semi annual interest payment. So I guess you don't mind having a lot of tiny C...
by lazyday
Sat Jun 17, 2017 5:47 am
Forum: Investing - Help with Personal Investments
Topic: Ally Bank No penalty CD for parking cash, is there a catch?
Replies: 37
Views: 4503

Re: Ally Bank No penalty CD for parking cash, is there a catch?

I had the 1.25% Ally CD and am on the phone now with Ally. There appears to be no way to transfer the money directly online from the old CD to a new 1.35% CD, so they're doing it for me. You can redeem your CD to a savings or even external checking or saving account only but not directly to another...
by lazyday
Fri Jun 16, 2017 1:26 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Can you please name some of the online banks that have 1.25-1.35% rates? Savings Account Rates | DepositAccounts.com . I don't see 1.35%, but I see three at 1.30% and three at 1.25%. You can get 1.35% for minimum of $25K in a no-penalty 11-month CD at Ally Bank. You must wait six days to do early w...
by lazyday
Fri Jun 16, 2017 12:13 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

If you haven't looked at ally in a while, they now allow you to close a cd online before maturity, and it seems that the funds are available immediately. The 11 month has no penalty for early withdrawal. But of course you can't make autopayments from it or write checks from it, so it's not really a ...
by lazyday
Fri Jun 16, 2017 11:43 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Generally has less than $10K, so don't care about 0.2% rate difference. Makes sense. Can you please name some of the online banks that have 1.25-1.35% rates? Take a look at https://www.depositaccounts.com/blog/bank-accounts-survey/ I haven't looked into them, but there are a few that don't seem to ...
by lazyday
Fri Jun 16, 2017 9:57 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

Theoretical wrote:Well, short term credit risk tends to pay off.

Maybe in general, but this fund with lower yield than a bank account won't.
by lazyday
Fri Jun 16, 2017 9:32 am
Forum: Investing - Theory, News & General
Topic: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)
Replies: 104
Views: 10134

Re: Vanguard Prime Money Market Fund (VMMXX) breaks 1.00 (% not $)

I never understood why people like this fund at times that it has higher risk and lower return than other choices. Like right now. You can get 1.25% to 1.35% returns at a few online banks today. FDIC insured. For money that's already sitting at Vanguard that we don't want to move to a bank, we could...
by lazyday
Fri Jun 16, 2017 3:35 am
Forum: Investing - Help with Personal Investments
Topic: Direct CD vs. Brokered CD
Replies: 18
Views: 1483

Re: Direct CD vs. Brokered CD

Here's some more info:

https://www.depositaccounts.com/banks/ally-bank/offers/

Not available in an IRA, and last time they offered something like this, it only lasted 3 weeks.

Early withdrawals must be 100% of each cd, but with the new online capability, funds are available right away.
by lazyday
Thu Jun 15, 2017 12:21 pm
Forum: Investing - Theory, News & General
Topic: Formulas for International Stock Allocation
Replies: 8
Views: 868

Re: Formulas for International Stock Allocation

The Dan wrote:Swenson : 25%

The sample portfolio from around the time of the financial crisis was 25% non-US equity and 30% fixed income.

So 25% of the whole portfolio, and 25/70 = 36% of equity was international and EM.
by lazyday
Wed Jun 14, 2017 3:06 pm
Forum: Investing - Help with Personal Investments
Topic: Direct CD vs. Brokered CD
Replies: 18
Views: 1483

Re: Direct CD vs. Brokered CD

VictoriaF wrote:For example, Ally Bank is now offering 1.35% 11-months no-penalty CDs

Looks like a good deal. Requires $25,000.
by lazyday
Wed Jun 14, 2017 1:59 pm
Forum: Investing - Theory, News & General
Topic: What growth rate for your projection calcs?
Replies: 31
Views: 2513

Re: What growth rate for your projection calcs?

I'm happy to see people using realistic numbers given the very high PE10 of the US market today. Instead of assuming 6.5% or 7% real returns just because that's happened in the past. 3.5% or 4% sounds like an ok assumption, though of course it could end up much lower or higher. For example, we might...
by lazyday
Wed Jun 14, 2017 2:38 am
Forum: Investing - Help with Personal Investments
Topic: FB Vs. Apple?
Replies: 9
Views: 909

Re: FB Vs. Apple?

Bogleheads® emphasize regular saving, broad diversification, and sticking to one's investment plan regardless of market conditions. https://www.bogleheads.org/wiki/Getting_started Two stocks may be better than one, but it is not much diversification. If you decide to become a Boglehead, you could d...
by lazyday
Wed Jun 14, 2017 2:29 am
Forum: Investing - Help with Personal Investments
Topic: Question on Schwab Fundamental ETFs vs. Mutual Funds
Replies: 4
Views: 406

Re: Question on Schwab Fundamental ETFs vs. Mutual Funds

When any fund trades stocks, it can fall behind the index it tracks because of the market impact on the stocks it trades, the bid-ask spread on stocks it trades, and commissions paid by the fund. None of these are reflected in the expense ratio. With a traditional mutual fund, you are subject to the...
by lazyday
Mon Jun 12, 2017 7:52 pm
Forum: Investing - Theory, News & General
Topic: Present US equity risk premium
Replies: 4
Views: 596

Re: Present US equity risk premium

Sammy, It seems to me like one reasonable way to estimate future returns and then the equity risk premium, though I’m still working through these concepts myself. There's probably some logical mistakes below. Expected returns: Schiller P/E10 is about 30 . Earnings yield is the inverse, or E10/P, so ...
by lazyday
Mon Jun 12, 2017 12:51 pm
Forum: Investing - Theory, News & General
Topic: Bogle Doubles Down on US Index Funds
Replies: 118
Views: 12077

Re: Bogle Doubles Down on US Index Funds

Shiller Heh, he predicted the 2000 meltdown in 1996. Not sure if he gets credit for that. Googled very quickly for a source, maybe you have a better one. https://www.bloomberg.com/view/articles/2015-02-19/robert-shiller-on-bubbles-in-new-irrational-exuberance-edition He had been warning about overpr...
by lazyday
Sun Jun 11, 2017 3:22 pm
Forum: Investing - Theory, News & General
Topic: Bogle Doubles Down on US Index Funds
Replies: 118
Views: 12077

Re: Bogle Doubles Down on US Index Funds

Robert Shiller the Nobel Prize winning economist who predicted the 2000 tech stock melt down and more recently the housing market collapse, said last week that in his view there is a fair probability that US stocks could rise another 50% before experiencing a significant pull back. He said that it'...
by lazyday
Sun Jun 11, 2017 3:10 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 7166

Re: Larry Swedroe on REITs

Also there is a limit to how many assets you can sell (which is where "return of capital" comes from) without reducing future income stream. So it's not mostly excess cash which depreciation converts from earnings to return of capital? Of course if we assume that depreciation is real, if ...
by lazyday
Sun Jun 11, 2017 3:05 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe on REITs
Replies: 66
Views: 7166

Re: Larry Swedroe on REITs

The research affiliates whitepaper (published in 2014) states that REITS suffer a 2%/year real dividend decrease, and from 2003 to 2014 that is exactly what happened to the Vanguard REIT fund: VGSIX (REIT INDEX) Stock Price Div % derived div 1/1/2003 11.52 5.41 0.623232 1/1/2014 22.37 2.85 0.637545...
by lazyday
Sat Jun 10, 2017 7:36 am
Forum: Investing - Theory, News & General
Topic: Allen Roth article on how to get 5% income
Replies: 16
Views: 2684

Re: Allen Roth article on how to get 5% income

AQR uses two different expected returns r=y+g predictions that handle the problem of increasing buybacks. First method, found near the top of p3 of the appendix , is essentially to replace dividend yield with .5/CAPE, or half the earnings yield. Historical payout ratio isn’t far from 50%, so it’s li...
by lazyday
Sat Jun 10, 2017 6:18 am
Forum: Investing - Help with Personal Investments
Topic: Anyone still buying I-Bonds these days?
Replies: 16
Views: 2072

Re: Anyone still buying I-Bonds these days?

So I guess I could buy a $10k I-Bond now, hold it for a year at 2% interest, then cash it in and take the 3 month interest penalty which makes my actual rate 1.5 % for the year? And if a year from now I don't have a use for the money (which I don't) I can just let it ride. But if rates were to impr...
by lazyday
Sat Jun 10, 2017 2:49 am
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Persistence Of The Value Premium
Replies: 47
Views: 4855

Re: Larry Swedroe: Persistence Of The Value Premium

I'm not sure it was warning about US stocks at all. It talked about the Japanese experience, then mentioned 1987, but nothing on 1996 valuations: Clearly, sustained low inflation implies less uncertainty about the future, and lower risk premiums imply higher prices of stocks and other earning asset...
by lazyday
Fri Jun 09, 2017 1:51 pm
Forum: Investing - Theory, News & General
Topic: Vanguard Bond Quotes
Replies: 2
Views: 469

Vanguard Bond Quotes

Anyone have experience with Treasuries or TIPS on Vanguard? Yesterday I bought a 3 month bill. The quoted price spread was less than 1 basis point, and the quoted ytm bid and ask were both about .97 give or take. It took a few minutes for the buy order to execute, and my price was lower than the ask...
by lazyday
Fri Jun 09, 2017 1:11 pm
Forum: Investing - Theory, News & General
Topic: Allen Roth article on how to get 5% income
Replies: 16
Views: 2684

Re: Allen Roth article on how to get 5% income

Since share buybacks only began in 1981 (they were illegal prior to 1981, I believe), one has to believe their net effect has been to increase earnings growth rates in recent decades — along with many other factors. But the net effect of these buybacks is already included in the EPS growth data abo...
by lazyday
Fri Jun 09, 2017 11:56 am
Forum: Investing - Theory, News & General
Topic: Allen Roth article on how to get 5% income
Replies: 16
Views: 2684

Re: Allen Roth article on how to get 5% income

My point is that the effect of net share buybacks are already included in the per share dividend and earnings growth data reported for the S&P 500 Index. For r = y + g, it makes sense to me that we would use current y (dividend yield). But should we use current g? Doesn't it move all over the p...
by lazyday
Fri Jun 09, 2017 11:23 am
Forum: Investing - Theory, News & General
Topic: Allen Roth article on how to get 5% income
Replies: 16
Views: 2684

Re: Allen Roth article on how to get 5% income

I don’t believe this is correct. Both the dividend yield and the earnings growth rate factors used by Mr. Bogle in his simple expected value formula are per share . In other words, the net effect of share repurchases are already included in the dividend and earnings growth data. Since buybacks chan...

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