Brace yourself for mediocre stock market returns in the next decade

CHAPEL HILL, N.C. — Think back 10 years ago, in December 2009: How many of us were forecasting that the subsequent decade would be one of the best in U.S. history for the stock market?

In fact, however, the stock market SPX, +0.01% in December 2009 was about to embark on an exceptional decade: Its inflation-adjusted total return since then has been over 11% annualized, versus an average of 6.8% since 1871 . Consider: In December 2009, the trailing 10-year real total-return of the S&P 500 was minus 3.2% — 10 percentage points below the long-term annual average. From the perspective of regression to the mean, it therefore shouldn’t have been a big surprise that the subsequent decade would be such a good one for equities.

Are there any alternatives that look any better? The answer is implicit in the accompanying chart, which shows the historical returns of various asset classes, over both the last decade and over the 80+ years prior to the last decade. A final word about bonds. Regression to the mean provides less of a guide to their performance over the coming decade, since their returns are largely a function of their starting yield. This was certainly the case with both intermediate- and long-term Treasuries TMUBMUSD10Y, -3.53% over the last decade, as their total returns are within shouting distance of what they were yielding in December 2009.

There is going to be a recession. Using up the ammo to prevent it is ridiculous because its inevitable. Now when the recession happens, even more nontraditional methods will be used and at some point you will severely damage the dollar. That will cause incredible pain for people.

Forever Bull is the new normal

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

A great market shift is coming in 2020, top investor saysAs stocks cross into the next decade at records, one top investor sees a major market shift underway toward value and away from growth. Is TSLA a giant ponzi scheme? TruckFail More like a crash
Source: CNBC - 🏆 12. / 72 Read more »

Here are the best-performing stocks of the decadePioneer of the streaming service industry, Netflix is the best performing stock of the decade, returning a whopping 3,726% in 10 years. Yeah but uh Bitcoin outperformed them ALL - FACT!
Source: CNBC - 🏆 12. / 72 Read more »

Phase one U.S.-China trade deal: What Cramer and other pros are sayingThe first leg in the U.S. and China's long-awaited trade agreement provides a catalyst for stocks heading into next year, market professionals say. TradingNation TradingNation This is the same Kramer the told everybody to sell out of the stock market and move to Timbuk3 years ago... TradingNation The commitment to gullibility is astounding. Under any other president these people would be like “phase 1?! What the fuck s phase 1?! Do we have a trade deal or not?!” But under Trump they’re enthusiastically willing marks
Source: CNBC - 🏆 12. / 72 Read more »

Stock Markets Failed To Rally On China Trade Deal, Here’s WhyWhy stocks didn’t make headway on today’s trade news, according to market experts by skleb1234 skleb1234 After the 3rd false alarm they caught on? skleb1234 🖕🤔🇦🇷 skleb1234
Source: Forbes - 🏆 394. / 53 Read more »

Wall Street Hits Record Highs After Reports U.S. Signs Trade Deal With ChinaWall Street hits record highs after reports U.S. signs trade deal with China by skleb1234 skleb1234 W skleb1234 can we stop using this kind of pics everytime to illustrate if market is happy or not? skleb1234 Winning ❤️💃🏻
Source: Forbes - 🏆 394. / 53 Read more »

Wall Street Hits Record Highs After Reports U.S. ‘Very Close’ To China Trade Deal As Deadline LoomsThe stock market surged to record highs on the news. Lollll When am i gonna get published too ? Manipulating the stock market once again.
Source: Forbes - 🏆 394. / 53 Read more »