Investors who are worried that the stock market rally has gone "too far, too fast" and seek a "safe haven" in the bond market may want to think twice. The reason why is that the credit market appears highly precarious. First, with rates at historic lows, even a modest rise in rates will rapidly reduce … Continue reading A bond market update →

The starting valuation matters! When P/E starts at relatively lower levels, higher returns follow—paying less yields more. When the market P/E starts at higher levels, subsequent returns are lower. This graphical analysis presets the compounded returns that follow over the subsequent ten years based upon the starting P/E ratio.