Hope springs eternal… until it confronts reality. The past 17 years have led investors to challenge conventional wisdom and to seek a deeper understanding of the stock market. Crestmont’s Reconciliation Principle enables advisors and investors to peel back the cloak and see the fundamental principles that drive the market. It’s empowering! The Principle enables investors to see that the current high P/E destines the stock market to an extended period of below-average returns, but it also helps them to take the actions necessary to achieve long-run investment success.
This article explores the value of understanding and assessing the environment over your investment horizon. Market weather may be hard to predict, but market climate can be credibly determined.