Investors often simplify market conditions by relying on a single performance measure. However, this approach can be misleading. The increased valuations seen in recent decades have established a steeper link between initial valuations and future returns. Investors must recognize that relying on conventional metrics may not provide a complete picture of market dynamics. Understanding this relationship can help investors make informed decisions and avoid potential pitfalls when assessing market opportunities. Learning to navigate these complexities is crucial for successful investing, especially when valuations are high. As investors look to the future, they should consider multiple factors influencing returns beyond just current valuations to enhance their investment strategies and outcomes.