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The Russell 2000® Index (which tracks small-cap stock performance) was up only 0.44%. Are the Russell 2000’s weak returns a sign of slowing economic growth, or is the recent underperformance of small caps reflecting investor sentiment about current market opportunities? times earnings over the same period.
The index’s loss of 6.24% in 2018 was paltry compared to its 38% loss in 2008 and three consecutive double-digit down years of 2000-2002. This helps to illustrate the fact that market corrections are common over most periods of time and should be viewed as the market resetting stock valuations back to a more fundamental level.
stocks that started in the early 2000s. Between 2000 – 2009, the cumulative total return for the S&P 500 was negative 9.1% From 2000 to the end of 2009, the global allocation would have outperformed by nearly 8.8% Valuations. international stocks look much more attractive on a valuation standpoint. in total.².
With traditional assets like stocks and bonds at high valuations, the implications for future returns of those assets may be underwhelming. Asset allocations could change depending on risktolerance, investment objective and assets available for investment. Source: BLOOMBERG. It is not representative of an actual portfolio.
With traditional assets like stocks and bonds at high valuations, the implications for future returns of those assets may be underwhelming. Asset allocations could change depending on risktolerance, investment objective and assets available for investment. Source: BLOOMBERG. It is not representative of an actual portfolio.
And that’s, that’s the predecessor to Amherst, which we bought in 2000 and had been running it since then. So over time, the risk composition of the pool would, would change dramatically. So think about 2003 home prices had gone up a lot from 2000. And in the 2000 at the 2005 conference, it’s kind of wild.
There can be years when stock prices do not appreciate (reference the post-2000 and post-2008 periods), however, those who wisely rebalanced and dollar-cost-averaged positions in their portfolio were handsomely rewarded for their discipline and patience over the long-run.
So I think the balance of those two and marrying those two together, and while we’re a large company, we’re around 200, 2000 people, again in, in over 2020 countries, it’s big enough where it requires, you know, certain process. What is that sort of risk embracing, like how, how does that settle out?
Valuations Matter, but Maybe Not as Much as You Think We absolutely pay attention to valuations, and the high valuations on technology is one of the reasons we didnt come into 2025 overweight in this group like so many others. The bottom line is that since 2000, the average year has gained 9.8%. But that drops to -12.5%
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