The simple math of stock returns

Uncategorized, Weekly Update

September 16, 2016 Update


The simple math of stock returns

We have noted in many articles of the past that asset prices come from fundamentals (e.g. earnings/dividends) x investor emotion. Below is a reprint of an article from Ben Carlson’s “A Wealth of Common Sense” blog discussing the same notion but from a much higher power than ourselves – namely Vanguard founder John Bogle!

Take it away Mr. Carlson and Mr. Bogle:
Vanguard’s John Bogle has a simple formula for estimating future stock market returns: (more…)