Originally Posted by keegs
Have you you changed your investment strategy, stayed the course?
I started putting new money into cash.
If your asking is the equity risk premium is still there, then yes. If I assume you're investing in smart cash equivalents (high paying savings accounts, CDs, or IBonds), then you're going to roughly keep pace with current inflation, if not slightly lag it, at worse.
Even at current prices, US stocks should pay on average ~ 2-4% real, depending on the valuation metric. If you're willing to consider foreign stock, including emerging market, you can maybe add a couple more percent to that taking into account depressed foreign stock valuations.
In short, stocks (especially US) likely wont pay what they did in the past. But at current low interest rates, it'll still beat cash, long-term. I'm going to side with Warren B. here per his interview in 2013, that bonds (and I'm assuming he include cash) are just plain lousy investments. These are best used to park money that will be spent within 5 yrs.
Stocks, essentially have to pay more than cash does. Otherwise, no one would buy them.