Something for index or etf investors to lower their expectation on return
https://www.cnbc.com/2019/02/11/vang...xt-decade.html
The stock market won't keep returning the kinds of yearly gains investors have gotten used to, according to Vanguard's Greg Davis.
"Our expectations around U.S. equity markets is for about a 5 percent median, annualized return," says the fund group's CIO.
The stock market won't keep returning the kinds of yearly gains investors have gotten used to since the financial crisis bottom in 2009, Vanguard's chief investment officer, Greg Davis, said.
"If we look forward for the next 10 years, our expectations around U.S. equity markets is for about a 5 percent median annualized return," he told CNBC on Monday. "Five years ago, we'd have been somewhere in around 8 percent."
"Our expectations have clearly come down," Davis added. The historical average annualized return for the stock market, accounting for inflation, is about 7 percent.
The S&P 500 which has soared about 15 percent since its Christmas Eve closing low, after three months of turmoil is at the "high end of fair value," Davis said
https://www.cnbc.com/2019/02/11/vang...xt-decade.html
The stock market won't keep returning the kinds of yearly gains investors have gotten used to, according to Vanguard's Greg Davis.
"Our expectations around U.S. equity markets is for about a 5 percent median, annualized return," says the fund group's CIO.
The stock market won't keep returning the kinds of yearly gains investors have gotten used to since the financial crisis bottom in 2009, Vanguard's chief investment officer, Greg Davis, said.
"If we look forward for the next 10 years, our expectations around U.S. equity markets is for about a 5 percent median annualized return," he told CNBC on Monday. "Five years ago, we'd have been somewhere in around 8 percent."
"Our expectations have clearly come down," Davis added. The historical average annualized return for the stock market, accounting for inflation, is about 7 percent.
The S&P 500 which has soared about 15 percent since its Christmas Eve closing low, after three months of turmoil is at the "high end of fair value," Davis said