again, re: the coming era of low-returns capitalism
Jan 4, 2022
This shows expected investment returns over the next ten-year period:
. around 1% on Treasury bills
. around 1% on the benchmark 10-year Treasury bond
. around 3% on corporate bonds
. around 2% on utility stocks
. average 6% per annum average losses on SP stocks
That means a diversified portfolio will return nothing over the next ten years.
After stock and bond markets had deflated during the early 1980s, the subsequent ten-year average annual return on a diversified portfolio was about 12%. The overall historical average is about 7%.
