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Data Update 2 for 2022: US Stocks kept winning in 2021, but…

Musings on Markets

The results are similar if you break stocks down based upon price to book ratios or revenue growth rates. Beyond the fifth year, I make the simplifying assumption that earnings growth will converge on the nominal growth rate of the economy, which I set equal to the risk free rate.

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Data Update 1 for 2021: A (Data) Look Back at a Most Forgettable Year (2020)!

Musings on Markets

Consider, for instance, an investor who picks stocks based upon price to book ratios, who finds a stock trading at a price to book ratio of 1.5. In this section, I will list the data that I estimate and report, as well as explain how I consolidate company-level data into more usable group statistics.