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I don't follow your equation.

https://ycharts.com/indicators/sp_500_monthly_return

Yours is unweighted, but return of the S&P in Dec 2021 4.36% The dividend yield about 1.37% The price ~4600.

4.36/1.37 - 4600 indeed very less than zero.

The relationship means nothing to me.

I must be getting this all wrong.



I've been at top HFs the last 15 years, I do this for a living, and I have no idea what the guy is talking about either.


It’s the sum over all periods into the future.


How do we get the returns or dividend yields for future periods?




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