Should You Dollar Cost Average?
When faced with a large windfall, most investors naturally rely on Dollar Cost Averaging (DCA) to gradually invest their portfolio. The touted benefits of DCA are usually (1) avoiding a […]
Do Interest Rates Matter?
As mentioned in the last newsletter and by like-minded analysts, current valuations point to an expensive US stock market relative to …
2011 Year-End Valuations
As mentioned last year, valuation ratios such as P/E are not very useful in making one year market predictions. This is disappointing, since they do a fair job of predicting longer-term returns of at least 5-10 years …
Valuing Real Estate (REITs)
In prior newsletters, I made the case for using the P/E ratio to value the stock market and to predict future returns. Now let’s apply the same analysis to real estate, or more specifically REITs …
2012 Year-End Valuations
Valuation ratios such as P/E are not very useful in making one year predictions, although they do a fair job of predicting longer-term returns of at least 5-10 years …