The Expected S&P 500 Returns 2015-2025

A great quote from Leon Cooperman, the founder of the hedge fund Omega Advisors: “I am very knowledgeable and cognizant of what the S&P 500 represents; in 2015, it is an index of 500 companies, on average they are growing about five percent a year, and they yield about two percent, and they trade a little under three times their book value. They have got 35 or 36 percent of debt in their capital structure, and for those financial statistics you pay on average about 18x this year’s earnings. So, as a value investor, I look for either more growth, a lower multiple, or more asset value possibly mixed with more income yield. I want some combination that says Buy Me. My team and I spend all day long, seven days a week, 24/7 trying to look for things that are mispriced in the market.”

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