Question

Equity market are more predictable in long term true or false answer

Answer 1

THIS STATEMENT IS TRUE

Answer 2

Equity markets are more predictable in long term. The statement is TRUE.

• In the long term, the expanse of equity market returns is more predictable than one thinks.
• Despite its evident complexness, the market, over the long term, is ridden mainly by two aspects.
• The first aspect is revenue growth. Higher revenue delivers higher dividends and often directs to higher equity prices. But there is a restriction to revenue growth. Over time, revenue does not thrive faster than the economy. That propels long-term growth the main backer of market returns.
• The second aspect is the inflation rate. Deflation and high inflation are a market wretch. They disrupt the greater values and powerful gains that low and regular inflation brings.

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