When A Storm Is In The Offing: Fundamental Growth In The U.S. Equity Market

When A Storm Is In The Offing: Fundamental Growth In The U.S. Equity Market by Michael Aked, Michele Mazzoleni & Omid Shakernia – Research Affiliates

Key Points

1. Nearly one-third of the time, equity market momentum can be misleading in predicting future dividend growth.
2. When investors rely solely on historical price returns to inform their future investment opportunities, they are at risk of allowing random price fluctuations to drive perceptions, going to cash too late and staying in cash too long. Broadening decision-making inputs to include economic data can improve forecasting ability.
3. The last several years have been smooth sailing in the alignment of real stock price growth and real dividend growth, but investors would do well to check which way the...
   

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