Articles to peruse - October 17th of 2010
Some articles I checked out over the last few weeks, that you may find worth reading... (Recommended) Strong bounce from the lost decade for stocks? (New York Times): One of the arguments made by long-term bulls is that the stock market will post strong returns over the next decade because the last decade was extremely poor. That mean reversion has actually been true throughout history. However, what is ignored by bulls is the fact that valuations now are still high and way above what prior averages. This is an excellent article that touches on why we may not see strong returns over the next decade. I concur with some of the analyst comments in the article and think that US stocks will probably post around 7% per year (nominal) going forward. This, as anyone who has studied compounding would know, is a massive difference from 10% per year that stocks haver returned over the last 80 or 90 years. (Recommended if macro-oriented) Timber investment primer (Advisor Perspectives): In t...