Valuation matters

Valuation is crucial—both historically and statistically. Research from Bank of America (BofA) shows that 80% of equity returns over the next decade can be traced back to the valuation at the time of investment. This study, based on data from 1987 to the present for the S&P 500, underscores the long-term importance of entry price, even when market sentiment often prioritizes momentum. While many investors focus on chasing trends, the price you pay for an asset ultimately drives returns in the long run.