Return expectations - Global Equity, next decade

Thrugelmir

ChilliBob said:

1. Yes, it's likely returns will be significantly lower for perhaps the next decade. But, nobody knows, this is just combined predictions across multiple sources.

With the provisio that some markets will perform far better than others. Markets are broad and extensive. There's always winners even in the darkest of moments. Build a margin of comfort into your thinking. Past few years of exceptional returns are simply levelling off and reverting to the mean. Markets cannot outperform GDP indefinately. 

NedS

Thrugelmir said:

ChilliBob said:

1. Yes, it's likely returns will be significantly lower for perhaps the next decade. But, nobody knows, this is just combined predictions across multiple sources.

With the provisio that some markets will perform far better than others. Markets are broad and extensive. There's always winners even in the darkest of moments. Build a margin of comfort into your thinking. Past few years of exceptional returns are simply levelling off and reverting to the mean. Markets cannot outperform GDP indefinately. 

Agree. The reason we invest in equities is that over the long term history tells us they typically return ~8-10% per year, annualised returns. Assuming we believe that will continue to be the case over the long term, and we except we have had a decade of above average returns, then we must also accept that we may have a period of below average returns in order to maintain the long term status quo.