Valuations | Vomund Investments

Goldman Sachs expects S&P 500 earnings to be $94 next year and $104 in 2012, which gives the index a price-earnings multiple of 13 on 2011’s earnings and less than 12 on 2012’s estimate. Compare that to the ten-year Treasury, which at a 3.14 percent yield trades for nearly 32 times earnings. And stocks can and will generate more and more income as payouts rise; the ten-year Treasury cannot. Investors looking over the landscape are increasingly turning to stocks, and you can see why. Bonds are going the other way, falling sharply.

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At Vomund Investments, we tailor our managed accounts to meet the client’s comfort level using stocks, exchange-traded funds (ETFs), preferred stocks, and exchange-traded debt. Most portfolios include lower-risk, better-rated vehicles with yields of five percent or more.

We also hold some higher-yielding stocks with both dividend growth and capital gains potential. Prices fluctuate of course, but their volatility is less than that of most equities.

Whether you are investing primarily for growth to reach retirement, or for income to enjoy your retirement, our managed account program deserves a closer look.

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