Note that intrinsic value drives the capital allocation decision at least as much as risk tolerance.For over a century, the S&P 500 (and its antecedents) have reverted to a mean of about 16.5 times profits.
It appears possible to somewhat forecast your 20-year financial investment return from the present index P/E ratio. See my ancient post on the subject: http://www.spinoffprofiles.com/proofLikeLike
Note that intrinsic value drives the capital allocation decision at least as much as risk
tolerance.For over a century, the S&P 500 (and its antecedents) have reverted to a mean of about 16.5 times profits.
It appears possible to somewhat forecast your 20-year financial investment return from the present index P/E ratio.
See my ancient post on the subject: http://www.spinoffprofiles.com/proofLikeLike
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