Investing In An Ultra-Low Return Environment
As stocks and bonds have had spectacular returns even amid the scary COVID-19 pandemic, it becomes even more imperative for us to examine the current investment environment. Unfortunately, for a long term investor, the picture is not rosy, in fact, it’s depressing.
Stock and bond returns for the coming decade
Stocks are making new highs almost non-stop. It does seem that “this time is different”: with the Federal Reserve behind the market (to do whatever it needs to support it), the idea of there is risk in stock investing is becoming more and more remote.
We have claimed numerous times that it’s much easier and more accurate to estimate stock returns in a long term. The long term here, however, should be again a truly long one: 10 years or even longer.
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