2012

November 30, 2012

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Where are the opportunities? – Effect of Valuation on Expected Returns

The chart illustrates the effect of current valuation on expected return over the next five years.

Buying undervalued assets results in positive valuation returns.Buying overvalued assets results in negative valuation returns.Non-US equity markets offer the best opportunities for valuation returns, and US Small Companies the worst.

About the Author

At The Headlands Group, we are committed to making high probability of success investors. We transform client concerns about financial markets into the confidence that comes from knowing their investing experience will be a successful one. If we can succeed in getting clients to avoid “easy and popular” and allowing us to do “difficult and unpopular” on their behalf, we have made them into the “house” at the market casino and improved the odds that they will be successful over their investing lifetimes. We believe our clients perform better than most large institutions – despite not having the same investment resources.

Asset Class Valuations 11/30/2012

Where are the opportunities? – Effect of Valuation on Expected Returns

The chart illustrates the effect of current valuation on expected return over the next five years.

HEADLANDS GROUP, INC.

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