Jeff Miller's Must-Read for Asset Allocators

Run, don’t walk, to see why Jeff Miller (A Dash of Insight) believes the stock market will garner a higher multiple next year.

Conventional wisdom on rates moving higher (which they have been) is that this presents a headwind for stocks in general.  Jeff says that the conventional wisdom is not necessarily applicable right now.  The gist of his research shows that the historical relationship between bond yields and stocks breaks down when interest rates are at an abnormally low level for a considerable period of time…

We are currently at the unusual tipping point in the relationship.  The emerging consensus about improving economic prospects is having two effects:  higher long-term bond yields and more confidence in earnings.

The implication is that stocks will get a higher multiple in 2011 as confidence improves.  This is not merely speculation, but a conclusion based upon the data cited.

Anyone engaged in asset allocation must allow this argument enter their thinking before laying out next year’s game plan.

Source:

Why the Market Multiple Will Be Higher in 2011 (A Dash of Insight)

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. immediate edge reviews commented on Sep 19

    … [Trackback]

    […] Read More to that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  2. w88 commented on Sep 20

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  3. Blazing Trader Review commented on Sep 21

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  4. 토토사이트 commented on Sep 26

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  5. 918kiss commented on Oct 03

    … [Trackback]

    […] Read More on on that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  6. porn movie commented on Oct 18

    … [Trackback]

    […] There you will find 22388 additional Information to that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  7. Quality engineering commented on Nov 11

    … [Trackback]

    […] Read More on that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  8. private tutoring commented on Nov 23

    … [Trackback]

    […] Here you will find 73537 additional Information on that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  9. Best Roof Guy commented on Dec 06

    … [Trackback]

    […] There you will find 76433 additional Info to that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]

  10. Football Tips commented on Jan 15

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2010/12/10/jeff-millers-must-read-for-asset-allocators/ […]