You need to be a market timer to survive

The above chart shows a very important relationship that you need to ponder and understand well. The source is the brilliant Lance Roberts.

Why is it important? Because it simply says that at the current market valuation (PE level) the annual return from equities will close to zero percent in the next 20 years.

What to do? Should you panic? No. The above relationship says that you need to acquire a new set of skills to face the market in the next 20 years.

The market will be volatile. It will go up a lot and down a lot. But, on balance it will show no returns.

Yes, you have to develop the set of tools to tell you the likely direction of the market over the next several months.

Anticipating this investment climate I just published a book that might help you in this endeavor: EASY WAYS TO BEAT THE MARKET WITH ETFs. 

Investment implications are discussed in depth in each issue of The Peter Dag Portfolio.

You will encourage my timely update of this blog on the economy and financial markets by entering a subscription to The Peter Dag Portfolio

Thank you for visiting this site.

George Dagnino, PhD
Since 1977 
Author, Profiting in Bull and Bear Markets

Disclaimer. The content on this site is provided as general information only and should not be taken as investment advice nor is it a recommendation to buy or sell any financial instrument. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.

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