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
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
“The stock market is nothing more than a ponzi scheme”“It’s all just fake money”“Stocks prices are completely arbitrary. It can rise or crash any day” Chances are, you’ve heard some variation of the above, many times in your life. It’s hardly surprising - stocks play a crucial role in our economy and personal savings. And … Continue reading What drives Stock Market Returns?