Tag archives: CAPE

Why Regular Portfolios Don't Contain Canadian Stocks - Part 2: Valuation

Last update on Sept. 1, 2014.

In the last article published exclusively for our members, I explained the various risks associated with Canadian stocks to partly explain why regular portfolios don't hold Canadian stocks today. However, even risky stocks can deserve our money if the prices are cheap enough.
In this article, I'll explain the valuation level of Canadian stocks.

What CAPE Tells Us About U.S. And Canadian Stocks 

There are several ways that we can measure the valuation level of the stock market overall. As I've explained in the past, one good way is to use the Cyclically ...

Continue reading

How To Forecast Long Term Stocks Market Returns

Last update on April 7, 2014.


They say that no one has a crystal ball regarding the stock market. While this is certainly true in the short run, we can actually do a decent job on the long run.


Many people have asked me if I thought stocks are too expensive to invest in today. After U.S. stocks rose by over 30% last year, and with many people in the financial media calling stocks overvalued, I understand the sentiment.

However, in my view, such questions slightly miss the mark. Higher valuation of stocks just means lower future returns. The real question is, given ...

Continue reading

Web Analytics