Using trailing twelve months earnings that are impacted by a recession is a mistake
They looked at the allocation between stocks, bonds and cash. They found that over 95 percent of the funds’ returns came from their asset allocation.
The investor does not have to be an expert in macro-economic theory.
Today’s investor cannot tell what percentage gain in earnings, dividends and prices he may expect in the next ten years
I am not attuned to this market environment, and I don’t want to spoil a decent record by trying to play a game I don’t understand just so I can go out a hero.