08-28-2021, 02:18 AM
Are the algorithms even looking for value in any meaningful way? I suspect they are not other than perhaps a value ETF.
I agree the strategies of Buffett and Graham are less relevant without adjustment. Buffet's most successful investment in decades is AAPL. Arguably getting overvalued now but it wasn't when he entered.
S&P 500 PE 15 may be over forever. I suspect the correct answer is not 25+ for companies growing earnings at sub 5%. We will find out in a few years when unsustainable deficit spending is throttled back. Low interest rates for a decade will cloud the outcome. IMO equity investments are completely dependent on that at these valuations.
For now I will mix it up. I've had a new opinion on what was better each of the last three decades. We'll see about the 20s. I've never thought near zero growth is a winning strategy. That may be the only principle that held up throughout. The market currently doesn't care if your balance sheet is reckless but that may not be a permanent change.
I agree the strategies of Buffett and Graham are less relevant without adjustment. Buffet's most successful investment in decades is AAPL. Arguably getting overvalued now but it wasn't when he entered.
S&P 500 PE 15 may be over forever. I suspect the correct answer is not 25+ for companies growing earnings at sub 5%. We will find out in a few years when unsustainable deficit spending is throttled back. Low interest rates for a decade will cloud the outcome. IMO equity investments are completely dependent on that at these valuations.
For now I will mix it up. I've had a new opinion on what was better each of the last three decades. We'll see about the 20s. I've never thought near zero growth is a winning strategy. That may be the only principle that held up throughout. The market currently doesn't care if your balance sheet is reckless but that may not be a permanent change.