Stay informed with the latest updates from the Rothman Investment Management team and explore articles and resources to support your financial journey.
If we have current earnings yield, a reasonable assumption for long-term growth, a time horizon and an assumed exit valuation, future returns becomes a math problem.
Stocks are still expensive, but momentum is clearly negative. Arguably the biggest driver of higher asset prices – loose monetary policy - is not only ending, but shifting into reverse. The economy appears to be weakening even as the Fed raises rates, but high inflation will keep the pressure on the Fed to keep rates higher.
Plans change, but don’t fail to plan. My life was planned out, with contingencies, and contingent contingencies. Things did not usually go as planned, and life has been exciting. Having sensible plans and being willing to adapt them is important.
Some of the highest flyers that led the market up and that had the most of their value far off in the future (by virtue of little to no earnings today) have been leading the way down. Rising housing costs, rising fuel prices, rising food prices and potentially less opportunity to use one’s house as a source of debt capital if home prices quit rising will pressure other consumer spending and investment flows