What is Factor allocation and ow can it help you in frothy markets? In August, GMO’s James Montier and Matt Kadnar published an article claiming that based on past performance, and valuation, the S&P 500’s total return over the next seven years is likely to be negative. [klarman] Specifically, Montier and Kadnar noted that between 1970 and 30 June 2017, an investment in the S&P 500 produced a real total annual return of 6.3%. Broken down, 3.4% of this return was from dividends with 2.3% from earnings growth. The remained of the return was a result of margin and multiple expansion. However, over…
Factor Allocation
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk