André Perold: S&P 500 gained 9% annually since 2005, 3% from multiples
André Perold · André Perold – Pockets of Inefficiency at HighVista Strategies (Capital Allocators, EP.169) · Dec 21, 2020 · at 42:08
André Perold, CIO of HighVista Strategies, breaks down historical equity market returns and explains how declining interest rates drove equity valuation multiple expansion over the previous 15 years.
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“You know, the last 15 years that we've been in business, if you look at the return on the S&P, it's nine percent a year since the late 2005. Of the nine, three percent a year has come from multiple expansion, and that three percent a year is entirely consistent with the three percent decline in bond yields over the same period.”
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