Is the stock market overvalued?
Is the stock market overvalued? That’s the million dollar question for us investors; isn’t it, but the answer is not quite as easy as some make it seem. There’s a lot of articles touting one answer or another. Using some of the metrics that are used to judge value, I wanted to take a deeper look. It’s easy to look at the graph below taken from here and draw conclusions. The 32.33 CAPE(Cyclically Adjusted PE Ratio A.K.A. Shiller PE) has only been higher one time in the past decade. It maxed out at 44.19 in December of 1999. That means we still have 30%+ upside so that’s it then –…
The Time in the Market portfolio – December update
It’s spreadsheet weekend and time to revisit my portfolio again! Winter has finally arrived and I just spent a good ten minutes digging out our cars from the snow storm that just passed through the state. One of the things I like about living in an apartment is the lack of shoveling as I just have to brush off our cars and move them to a parking spot that’s already been plowed! It gives me more time to do some of the things I love to do instead like updating my spreadsheets! I always get more productive during snow storms. It must be the fact that I’m stuck inside surrounded…
Revisiting my asset allocation
Asset allocation matters when it comes to long term returns. It serves as a guidepost to stick to when times are bad and also gives me the opportunity to balance the risk and rewards of investing according to my own goals and risk tolerance. There is no simple formula for figuring out what asset allocation is right for an individual. There are simple ones like the three-fund portfolio which includes three total market funds that cover domestic and international stocks as well as bonds weighted in a way that matches the risk tolerance of the investor. There are also more complicated ones that slice and dice the various asset classes…