Rethinking Retirement Financial Planning

Source Disclaimer: The intended audience for this article is someone who is reasonably savvy on financial planning. If you’re a novice, stop reading now and just do whatever your financial planner tells you to do. The conventional advice for financial planning in retirement has generally been the 4% rule. Ie, on the day of your … Continue reading Rethinking Retirement Financial Planning

Correlation between Stock-Market-Returns, GDP Growth and PE Ratios

In an earlier article, we discussed the primary factors that drive long-term stock market returns. Namely: Earnings yieldReal GDP growthInflation We also discussed ignoring fluctuations in the PE Ratio, because: PE ratios tend to be cyclic, and do not increase or decrease in perpetuity Over the long term, fluctuations in the PE ratio will cancel … Continue reading Correlation between Stock-Market-Returns, GDP Growth and PE Ratios