Value Investing News

Both Shiller and Smithers and others have shown that it is possible to value markets and that market valuations are bound by an invisible elastic thread to both earnings and assets. More importantly, these valuations allow you to say something about the expected future returns. This information can be used to guide an asset allocation strategy that gives a much better risk/return profile than simply being 100% in a stocks index.

• http://www.ukvalueinvestor.com/2010/02/value-based-allocation-strategy.html (200)