Search found 611 matches

by klaus14
Fri Jan 22, 2021 1:02 am
Forum: Investing - Theory, News & General
Topic: GMO 7 year forecast for Asset classes
Replies: 19
Views: 931

Re: GMO 7 year forecast for Asset classes

https://3.bp.blogspot.com/-gJbxpww2yxY/UtbcN3Oh9II/AAAAAAAAYnk/rp6C4CVd5WQ/s1600/GMO+7-Year+2014.png ...Why would anyone keep reading these? Sure he'll eventually be [temporarily] right but the people trusting his word are going to end up worse-off in the long run. Wow. Everything in this predictio...
by klaus14
Thu Jan 21, 2021 11:52 pm
Forum: Investing - Theory, News & General
Topic: GMO 7 year forecast for Asset classes
Replies: 19
Views: 931

Re: GMO 7 year forecast for Asset classes

JBTX wrote: Thu Jan 21, 2021 11:48 pm
I am not even sure how one invests in emerging markets value. Does such a fund even exist?
I use AVEM.
by klaus14
Thu Jan 21, 2021 1:12 pm
Forum: Investing - Theory, News & General
Topic: GMO 7 year forecast for Asset classes
Replies: 19
Views: 931

Re: GMO 7 year forecast for Asset classes

After GMO posted this, markets rose further and now they are even more bearish: https://www.gmo.com/americas/research-library/gmo-7-year-asset-class-forecast-4q-2020/ they assume all valuations will revert to mean. They think TIPS AND Nominal bonds AND stocks will do badly. This is unlikely. "E...
by klaus14
Wed Jan 20, 2021 11:08 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on using RPAR or NTSX as the fixed income portion of a portfolio?
Replies: 24
Views: 1609

Re: Thoughts on using RPAR or NTSX as the fixed income portion of a portfolio?

NTSX behaves like 90% VOO + 10% TMF. So you can think 10% of it like a 50 year duration bond. I would just do 90% VTI + 20% EDV instead (just invest 10% more). Much cheaper than 0.20% ER of NTSX and you can tax loss harvest stock or bond portion if need be. Do you mean using margin to obtain the ex...
by klaus14
Wed Jan 20, 2021 8:53 pm
Forum: Investing - Theory, News & General
Topic: Thoughts on using RPAR or NTSX as the fixed income portion of a portfolio?
Replies: 24
Views: 1609

Re: Thoughts on using RPAR or NTSX as the fixed income portion of a portfolio?

NTSX behaves like 90% VOO + 10% TMF.
So you can think 10% of it like a 50 year duration bond.

I would just do 90% VTI + 20% EDV instead (just invest 10% more).
Much cheaper than 0.20% ER of NTSX and you can tax loss harvest stock or bond portion if need be.
by klaus14
Wed Jan 20, 2021 4:39 am
Forum: Investing - Theory, News & General
Topic: Fair index values from those who think markets are overvalued
Replies: 7
Views: 891

Re: Fair index values from those who think markets are overvalued

Based on current low interest rates, I think an earnings yield like 4% is appropriate (compared to -1% real of 10Y TIPS, it has 5% premium, which is about average post 2009) People are expecting earnings to catch up to 2019 this year after life goes to normal with vaccines. So for SP500: 141 x 25 = ...
by klaus14
Wed Jan 20, 2021 2:03 am
Forum: Personal Investments
Topic: Retiring early from windfall, mid 30s, what is the correct asset allocation to use?
Replies: 85
Views: 8794

Re: Retiring early from windfall, mid 30s, what is the correct asset allocation to use?

I don't want to bog down the discussion with complicated formulas so I'm simplifying a bit, but you can think of the sustainable withdrawal rate for a portfolio as being the sum of three numbers: 1) the average real rate of return of the portfolio (it's a little more complex, but this is basically ...
by klaus14
Wed Jan 20, 2021 1:56 am
Forum: Personal Investments
Topic: Retiring early from windfall, mid 30s, what is the correct asset allocation to use?
Replies: 85
Views: 8794

Re: Retiring early from windfall, mid 30s, what is the correct asset allocation to use?

I agreed with a lot of recommendations here and made some adjustments. Increased bonds to 28% for a bond tent, I will glide into 80/20 over 5 years to lower SoRR. I think I will do the Variable Percentage Withdrawal too. Planned Allocation Cash 2% $49,000 Stocks USA 43.3% $1,060,850 VTSAX Stocks In...
by klaus14
Sun Jan 17, 2021 9:42 pm
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 5873

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Anyways, I don't understand #1. REIT's hold physical real assets. VPU(utilities) and LEMB(local currencies) Isn't LEMB just currency hedging? My understanding is currency hedging is basically a zero-sum game, so it's mostly pointless to play. Or perhaps I don't understand LEMB at all. VPU/utilities...
by klaus14
Sun Jan 17, 2021 8:48 pm
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 5873

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Right, the question is, turtle or hare? :) The SDS being low is a turtle approach, slow and steady and consistent growth, say a few percent, but pretty much there for any given economic condition. Hence these portfolios as being labeled "permanent". The choice between comparatively high r...
by klaus14
Fri Jan 15, 2021 8:33 pm
Forum: Investing - Theory, News & General
Topic: Guess what beat Bogle and Buffet since 2001? SCV and International
Replies: 119
Views: 8992

Re: Guess what beat Bogle and Buffet since 2001? SCV and International

Portfolio charts has a nice tool called Target Accuracy, which gives you the return distribution of every 10 or 15 year since 1970.

So instead of one specific 20 year, let's look at average of all 15 years:

US: 32,898
SCV: 49,018
EM: 34,663
ExUS: 26,947
by klaus14
Fri Jan 15, 2021 6:01 pm
Forum: Investing - Theory, News & General
Topic: Which type of REITs are in your portfolio and why?
Replies: 22
Views: 1823

Re: Which type of REITs are in your portfolio and why?

I would invest in REZ if it wasn't that expensive (ER 0.48%) Residential REITs are better diversifiers and they better represent real estate value. I am considering holding small amounts of AVB + EQR (largest 2 Residential REIT). I don't own any real estate. If I had, i wouldn't even look into REITs.
by klaus14
Fri Jan 15, 2021 3:59 pm
Forum: Investing - Theory, News & General
Topic: Value stocks are about to come out of their coma, says index fund powerhouse Vanguard
Replies: 47
Views: 4292

Re: Value stocks are about to come out of their coma, says index fund powerhouse Vanguard

Does anyone have the actual Vanguard page or announcement or news item that says this? Googling "vanguard 2021 outlook" came up with this: Vanguard economic and market outlook for 2021: Approaching the dawn The quote is on page 38 of the PDF linked on that page. Thank you! I would take no...
by klaus14
Fri Jan 15, 2021 3:48 pm
Forum: Investing - Theory, News & General
Topic: On what are you most bullish?
Replies: 194
Views: 9793

Re: On what are you most bullish?

Ivygirl wrote: Fri Jan 15, 2021 7:56 amU.S. REITs.
Why?
by klaus14
Sun Jan 10, 2021 10:17 pm
Forum: Investing - Theory, News & General
Topic: CAPE: A much stronger predictor of stock returns than many think
Replies: 544
Views: 34982

Re: CAPE: A much stronger predictor of stock returns than many think

there has not been a time in the past where 10-year nominal CAGR would have been more than 4.1% or less than -3.7% when the equity fraction was like July, 2020. This is awesome! Do you think this is a better predictor than CAPE? How about a two variable model? Latest data from FRED seems to be Q3 a...
by klaus14
Sun Jan 10, 2021 7:57 pm
Forum: Investing - Theory, News & General
Topic: CAPE: A much stronger predictor of stock returns than many think
Replies: 544
Views: 34982

Re: CAPE: A much stronger predictor of stock returns than many think

there has not been a time in the past where 10-year nominal CAGR would have been more than 4.1% or less than -3.7% when the equity fraction was like July, 2020. This is awesome! Do you think this is a better predictor than CAPE? How about a two variable model? Latest data from FRED seems to be Q3 a...
by klaus14
Sun Jan 10, 2021 2:25 am
Forum: Investing - Theory, News & General
Topic: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios
Replies: 97
Views: 5873

Re: Start Date Sensitivity: A Potentially Important Variable Impacting Portfolios

Are you saying that investor should focus on metrics like the historic IRRs and SWRs of portfolios instead? If so, then you may be right. Still, as a measure of the consistency of portfolio performance, SDS seems to be preferable to anything else I've come across so far, and I can see that being an...
by klaus14
Sat Jan 09, 2021 8:55 pm
Forum: Investing - Theory, News & General
Topic: Latest Thoughts from Larry Swedroe
Replies: 96
Views: 14079

Re: Latest Thoughts from Larry Swedroe

I’m saying that stocks generally uncorrelated with bonds, but when things go bad for equities, that correlation tends to go strongly negative. I’m saying that market and size low correlated, market and value at least uncorrelated, size and value uncorrelated with each other. The 60/40 portfolio has...
by klaus14
Sat Jan 09, 2021 5:07 pm
Forum: Investing - Theory, News & General
Topic: $1 million to be spent down $50k/year over 20 years?
Replies: 46
Views: 5912

Re: $1 million to be spent down $50k/year over 20 years?

Nice puzzle, the challenge is to catch inflation with minimal risk. Put $100k in a 1% checking account (TMobile Money). With this, buy I Bonds in the first 10 years and withdraw it in the last 10 years. This covers $10k of $50k in the last 10 years. I wish we could do that for more than $10k. So do ...
by klaus14
Fri Jan 08, 2021 5:10 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

With a long time horizon, why invest in bonds? They will likely underperform stocks over the long term. If you can invest in stocks without panic-selling, then I don't see a reason to invest in bonds with a 30 year timeline. Depends on wealth. If one has large savings, then holding some in safe ass...
by klaus14
Fri Jan 08, 2021 4:57 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

Market timing doesn't work. Market timing doesn't work? Hmm, that is interesting. So it didn't work me buying BTC in 2013? It didn't work when I bought the stock market dip in March 2019? Really interesting. Obviously market timing works if you can time it well. People mean timing it well is hard/u...
by klaus14
Fri Jan 08, 2021 4:54 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

But if I were to overweight Europe or Emerging that would imply I have knowledge that the market does not about these locations performing better, so... where did I get this magic knowledge all of the sudden? I am not sure in which country I will retire, so I'm not sure what my retirement expenses ...
by klaus14
Fri Jan 08, 2021 4:46 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

Non-US stocks are reasonably priced. You can overweight non-US and call it home bias :wink: If we fall into the "you can't pick stocks" mentality and if we know we cannot pick sectors, then why all of the sudden we can magically pick geolocations? What magic ability do we possess to deter...
by klaus14
Fri Jan 08, 2021 4:37 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

You are doing it right. With 30 years to retirement, no need for bonds. And total world stock is definitely a good enough choice (it's not clear if more complicated portfolios are worth it) But do have some cash cushion (2 months to 6 months expenses depending on how safe is your income and job pro...
by klaus14
Fri Jan 08, 2021 4:27 am
Forum: Non-US Investing
Topic: [Estonia, EU] Can't decide on right Vanguard index fund choice.
Replies: 59
Views: 1881

Re: Am I making a mistake with 100% world stock equity portfolio?

You are doing it right. With 30 years to retirement, no need for bonds. And total world stock is definitely a good enough choice (it's not clear if more complicated portfolios are worth it) But do have some cash cushion (2 months to 6 months expenses depending on how safe is your income and job pros...
by klaus14
Sat Jan 02, 2021 1:17 am
Forum: Investing - Theory, News & General
Topic: I thought bond's yield is low considered the current near zero interest rate, but BLV's yield looks good.
Replies: 16
Views: 1927

Re: I thought bond's yield is low considered the current near zero interest rate, but BLV's yield looks good.

Yes. Long term and it is heavy on corp bonds. I like vineviz rules of thumb for bond alloc: - your bond alloc should be the years of expenses saved. So if you have $100k to invest and you have $50k annual expenses, hold 2% bonds. Rest should be in stocks. This is because even if stock market collaps...
by klaus14
Fri Jan 01, 2021 6:26 pm
Forum: Investing - Theory, News & General
Topic: What if LTT isn't a safe haven?
Replies: 19
Views: 1803

Re: What if LTT isn't a safe haven?

At lower yields, bond convexity is more pronounced. right, but it is also harder for the yield move further. Intuitively, LTT @ 3% is a better hedge compared to LTT @ 1.5%. Reason is your are getting closer to the barrier where further decrease becomes very hard. We don't need to agree where the ba...
by klaus14
Thu Dec 31, 2020 9:00 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1133
Views: 120995

Re: Lifecycle Investing - Leveraging when young

I do something like what you described. I look at ERP estimation by Aswath Damodaran . It was 4.73% as of Dec 1. Then I compare it to last 10 years average, 5.58%. Then I reduce my equity target (from 80%) for each basis point difference from that 10 years average by 0.1%. 5.58% - 4.73% = 0.85. The...
by klaus14
Thu Dec 31, 2020 7:53 pm
Forum: Investing - Theory, News & General
Topic: Lifecycle Investing - Leveraging when young
Replies: 1133
Views: 120995

Re: Lifecycle Investing - Leveraging when young

Pretty useless answers but figured I should show them. Any ways, I formed my own opinion is as follows: 1) Their CAPE market-timing is the definition of "hindsight bias" and suffers from look-ahead bias (amongst other things). I would literally just ignore it. It doesn't help that it has ...
by klaus14
Thu Dec 31, 2020 3:45 pm
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 160
Views: 12694

Re: A bond rule of thumb better than "age in bonds"

How much bond do you think is reasonable for someone entering a hopefully long (50+ years) of retirement with adequate savings (~30x annual expenses) ? “Reasonable” covers a lot of ground in that scenario, but IMHO the less allocated to bonds the better. Ideally? No bonds. Fifty years is a long tim...
by klaus14
Thu Dec 31, 2020 1:50 am
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 160
Views: 12694

Re: A bond rule of thumb better than "age in bonds"

For those who prefer to think in terms of wealth, rather than age, there's a roughly equivalent wealth-based rule of thumb. Compute your expected retirement withdrawals (in current dollars) as a multiple of your current retirement savings: this is (in percentage terms) your bond allocation. So, for...
by klaus14
Wed Dec 30, 2020 9:11 pm
Forum: Investing - Theory, News & General
Topic: A bond rule of thumb better than "age in bonds"
Replies: 160
Views: 12694

Re: A bond rule of thumb better than "age in bonds"

For those who prefer to think in terms of wealth, rather than age, there's a roughly equivalent wealth-based rule of thumb. Compute your expected retirement withdrawals (in current dollars) as a multiple of your current retirement savings: this is (in percentage terms) your bond allocation. So, for...
by klaus14
Tue Dec 29, 2020 8:04 pm
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

What are your thoughts on these new funds? There are already a lot of solid SCV funds in the US: VBR, IJS, VIOV. The backtested regressions look a lot like IJS. Name Ticker Start Date End Date ------------------------------- - Rm-R SMB HML RMW CMA Alpha Annual Alpha R2 iShares S&P Small-Cap 600...
by klaus14
Tue Dec 29, 2020 8:01 pm
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

If one believes in SCV premium then why wouldn't a VTI + AVUV and VXUS + AVDV not be a smart portfolio? I keep reading about EM and that might give you a some additional diversification, but If VTI + AVUV is enough for all US stocks why isn't it enough for all ex-US? VXUS + AVDV is enough for a fac...
by klaus14
Tue Dec 29, 2020 3:53 pm
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

If one believes in SCV premium then why wouldn't a VTI + AVUV and VXUS + AVDV not be a smart portfolio? I keep reading about EM and that might give you a some additional diversification, but If VTI + AVUV is enough for all US stocks why isn't it enough for all ex-US? VXUS + AVDV is enough for a fac...
by klaus14
Tue Dec 29, 2020 1:21 am
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

Thanks. Per an earlier poster, I am going to look into an Emerging Market Value fund. I had read good EM funds were hard to find, so I was using VXUS at 16% using the Boglehead compromise of 20% stocks to International. By disposition, I am more US centric, but I recognize that is a bias. Do you ha...
by klaus14
Tue Dec 29, 2020 1:18 am
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

1) Why no Large Cap Growth? I've seen this written about, but in my investing life US Large Cap Growth has outperformed every other asset class. Is it because Total Market already has a heavy Growth component? Is it because Growth is highly overvalued at the moment? Or is it because long term Growt...
by klaus14
Mon Dec 28, 2020 4:51 am
Forum: Investing - Theory, News & General
Topic: Felix paper on factor investing; different factors
Replies: 95
Views: 5974

Re: Felix paper on factor investing; different factors

I can't totally follow all the math on the various papers, but I have a simple model portfolio I am posting below for criticism on this thread if anyone is up to read it. I came up with this after reading bogleheads for about a year now, but because: a) I already had a bunch of holdings b) I don't ...
by klaus14
Thu Dec 24, 2020 12:31 am
Forum: Investing - Theory, News & General
Topic: The Secret Tesla Reveals About Index Investing
Replies: 40
Views: 6236

Re: The Secret Tesla Reveals About Index Investing

And yet, as always, it doesn't matter. https://www.portfoliovisualizer.com/backtest-portfolio?s=y&timePeriod=4&startYear=1985&firstMonth=1&endYear=2020&lastMonth=12&calendarAligned=true&includeYTD=false&initialAmount=10000&annualOperation=0&annualAdjustment=0...
by klaus14
Wed Dec 23, 2020 5:42 am
Forum: Investing - Theory, News & General
Topic: Treasury bond NAV triple in value
Replies: 3
Views: 567

Re: Treasury bond NAV triple in value

EDV doubled its value in 10 years, not tripled.

For 30y, 3% rate decrease means:
30 x 3% = 90% increase in bond value.

EDV is not just long term treasury. It strips out coupons which increases leverage effect. that's why it's called "extended"

nothing surprising here.
by klaus14
Wed Dec 23, 2020 12:46 am
Forum: Investing - Theory, News & General
Topic: www.portfoliocharts.com ... "The Coolest Portfolio Tool on the Web"?
Replies: 277
Views: 66105

Re: www.portfoliocharts.com ... "The Coolest Portfolio Tool on the Web"?

I've been reading many of the forum posts on this site (not just this thread) for the past few weeks and see that the three fund portfolio is very popular with Bogleheads. But based on the comparison on portfoliocharts (portfolio matrix), it does not perform as well compared to many of the other po...
by klaus14
Tue Dec 22, 2020 2:50 am
Forum: Investing - Theory, News & General
Topic: Cambria Global Value - Value Tilt
Replies: 58
Views: 9667

Re: Cambria Global Value - Value Tilt

While you can use CAPE and other valuation metrics to look at the relative cheapness of markets, that is not the same as investing in the value factor. In the FF five-factor model, the value factor is defined as "high minus low" securities. High and low refer to book to market. Owning VXU...
by klaus14
Mon Dec 21, 2020 11:22 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

Re: US Stocks are cheap if you adjust for growth

Should probably point out that broad ex-US stocks generally pay higher dividends (which means higher foreign tax implications, but that's a digression from my point). When looking at a PEG, should probably be comparing PE/(Growth + Yield). Fundamentally, if PE stays the same while earnings grow 4% ...
by klaus14
Mon Dec 21, 2020 10:57 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

Re: US Stocks are cheap if you adjust for growth

Should probably point out that broad ex-US stocks generally pay higher dividends (which means higher foreign tax implications, but that's a digression from my point). When looking at a PEG, should probably be comparing PE/(Growth + Yield). Fundamentally, if PE stays the same while earnings grow 4% ...
by klaus14
Mon Dec 21, 2020 10:48 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

Re: US Stocks are cheap if you adjust for growth

Should probably point out that broad ex-US stocks generally pay higher dividends (which means higher foreign tax implications, but that's a digression from my point). When looking at a PEG, should probably be comparing PE/(Growth + Yield). Fundamentally, if PE stays the same while earnings grow 4% ...
by klaus14
Mon Dec 21, 2020 10:44 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

Re: US Stocks are cheap if you adjust for growth

Does past LTEG have predictive power? It's the five-year consensus expected long-term earnings growth, not just using past growth. But this question is still relevant: Were past predictions correct? I don't know. At some level, using LTEG to justify US equity valuations seems to be partially tautol...
by klaus14
Mon Dec 21, 2020 10:31 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

Re: US Stocks are cheap if you adjust for growth

000 wrote: Mon Dec 21, 2020 10:28 pm Does past LTEG have predictive power?
It's the five-year consensus expected long-term earnings growth, not just using past growth. But this question is still relevant: Were past predictions correct? I don't know.
by klaus14
Mon Dec 21, 2020 10:26 pm
Forum: Investing - Theory, News & General
Topic: US Stocks are cheap if you adjust for growth
Replies: 12
Views: 1266

US Stocks are cheap if you adjust for growth

I calculated the PEG ratios ( PE over growth ) using LTEG (long-term earnings growth) and forward pe Forward-PE LTEG PEG SP500 22.9 11.9 1.9 EAFE 17.4 7.9 2.2 Emerging 14.9 20.9 0.7 According to PEG Ratios, US is not expensive compared to EAFE (other developed markets). Of course this assumes US wil...
by klaus14
Mon Dec 21, 2020 9:08 pm
Forum: Investing - Theory, News & General
Topic: Vanguard explains why they expect international outperformance
Replies: 122
Views: 10784

Re: Vanguard explains why they expect international outperformance

I calculated the PEG ratios using LTEG and forward pe Forward-PE LTEG PEG SP500 22.9 11.9 1.9 ExUS 16.5 11.6 1.4 EAFE 17.4 7.9 2.2 Emerging 14.9 20.9 0.7 According to PEG Ratios, US is not expensive compared to EAFE . Of course this assumes US will retain faster growth for a long time (it takes 8 y...
by klaus14
Mon Dec 21, 2020 9:02 pm
Forum: Investing - Theory, News & General
Topic: Vanguard explains why they expect international outperformance
Replies: 122
Views: 10784

Re: Vanguard explains why they expect international outperformance

I calculated the PEG ratios using LTEG and forward pe Forward-PE LTEG PEG SP500 22.9 11.9 1.9 ExUS 16.5 11.6 1.4 EAFE 17.4 7.9 2.2 Emerging 14.9 20.9 0.7 According to PEG Ratios, US is not expensive compared to EAFE . Of course this assumes US will retain faster growth for a long time (it takes 8 y...