Investing: What We've Learned This Century

Discussion in 'Share Investing Strategies, Theories & Education' started by Redwing, 6th Mar, 2017.

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  1. Redwing

    Redwing Well-Known Member

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    Interesting (US) article on the last 16 years

    As of the end of 2016, the three main classes of investments, as measured by the following index funds, have had the following average annualized total returns, including reinvestment of dividends:

    • Vanguard Total Stock Market Index Fund (VTSMX), 4.92%
    • Vanguard Total International Stock Index Fund (VGTSX), 2.72%
    • Vanguard Total Bond Market Index Fund (VBMFX), 4.98%
    [​IMG]

    While the past isn't indicative of the future, these five takeaways are likely to help you with your investment decisions going forward.
     
  2. Redwing

    Redwing Well-Known Member

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    And

    What to Make of These Twice-in-History S&P 500 Valuations

    Something happened in the stock market this week that has only occurred twice since 1871: Robert Shiller’s favorite valuation method for the S&P 500, the cyclically adjusted price-to-earnings ratio, reached 30. So, is it time to worry?

    [​IMG]
     
  3. OscarBravo

    OscarBravo Well-Known Member

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    The best chart in that article in my opinion is the size of the drawdowns segregated by starting valuations. I'll see if I can track it down.
     
  4. Redwing

    Redwing Well-Known Member

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  5. OscarBravo

    OscarBravo Well-Known Member

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    Pretty sure the source of the graph I was talking about was Star Capital as well. I've always appreciated how willing those guys are to share their research!
     
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