traineeinvestor
Thinks s/he gets paid by the post
A short but interesting paper published by the Center for Retirement Research at Boston College: Equity Returns in the Coming Decade - Center for Retirement Research at Boston College
From the conclusion:
Nothwithstanding the "provided that" and "ïf" qualifications, the conclusion that 6.5% real returns could reasonably be expected over the next decade is encouraging.
From the conclusion:
Stocks currently are priced near 15 times earnings, offering stockholders a potential real return of 6.5 percent provided that corporations can maintain their earnings and price-earnings ratios do not drop in the future. Over the coming decade, if earnings continue to recover as they have during past business cycles, stocks are likely to pay returns that compare favorably to their historical averages.
Nothwithstanding the "provided that" and "ïf" qualifications, the conclusion that 6.5% real returns could reasonably be expected over the next decade is encouraging.