tag:blogger.com,1999:blog-5465015914589377788.post2940136351619660533..comments2024-03-20T09:32:16.592-04:00Comments on Michael James on Money: Stock Tapering: Adjusting Your Asset Allocation Based on the Market Price-Earnings RatioMichael Jameshttp://www.blogger.com/profile/10362529610470788243noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5465015914589377788.post-42547829921822661002021-02-06T08:41:10.198-05:002021-02-06T08:41:10.198-05:00Unknown,
You may be right, but it's not clear...Unknown,<br /><br />You may be right, but it's not clear how to factor interest rate information into the choice of asset allocation. It might make sense for stock prices to decline if interest rates rise unexpectedly, but that's little consolation to those who hold stocks through the price decline.<br /><br />I seek a mechanical strategy that captures a reasonable amount of upside while blunting downside. So far, the best mechanical strategy I have involves ignoring P/E and interest rates. I'd be interested if there is a competing strategy that takes into account P/E and interest rates.Michael Jameshttps://www.blogger.com/profile/10362529610470788243noreply@blogger.comtag:blogger.com,1999:blog-5465015914589377788.post-9979720737906860342021-02-06T08:08:44.460-05:002021-02-06T08:08:44.460-05:00Adjusting asset allocation for perceived value see...Adjusting asset allocation for perceived value seems I make sense, but surely the current interest rate needs to be factored in too. A P/E ratio of 20 looks very different in times of a 10% interest rate than when it has dropped to 1%!Anonymoushttps://www.blogger.com/profile/16298523060407061859noreply@blogger.com