Notes: There is an 84% negative correlation between The Warren Buffett Yardstick and the 10-year forward return for the stock market. This is probably the best representation of, “the price you pay determines your rate of return.”
Update (6/30/18): The current reading of market cap-to-GNP yields a 10-year forecast of an average annual total return (including dividends) of -1.6%.
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