Analysis of Stock-Market Returns in Relation to Valuations Since 1926

Friday, 12 April 2024, 08:49

This post delves into the historical correlation between stock-market returns and valuation levels since 1926. The analysis highlights the caution required in current high valuation scenarios, shedding light on the lessons to be learned from past trends for future investment strategies.
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Analysis of Stock-Market Returns in Relation to Valuations Since 1926

Historical Perspective

Since 1926, stock-market returns have shown a negative correlation with high valuations.

Cautionary Tale

It's the sort of stat you would expect a value fund manager to highlight, but it underscores the need for caution in current market conditions. Lessons are to be learned for future investment strategies.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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