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Vanguard Dramatically Cuts Expected Rate of Return for the Stock Market over the Next Decade

Question

[https://www.cnbc.com/2019/02/11/vanguard-cuts-expected-return-for-stock-market-over-the-next-decade.html](https://www.cnbc.com/2019/02/11/vanguard-cuts-expected-return-for-stock-market-over-the-next-decade.html)

**Summary:** Vanguard expects US Equities to return about 5% median annualized return over the next decade, largely thanks to slowing GDP growth. Americans are “going to need to save more and save for longer”

In case anyone needed a little bit more of a push to buy international equities, let this be it.

Answers

Someone answered:

And what is your reasoning to think international equities will outperform the US stock market over the next decade?

From where I sit, the US is looking substantially better then any other global market right now, but especially more so then Europe.

Someone answered:

Well, that's Venguard's opinion. They are far from always correct.

A prediction for an annualized return over the next 10 years is virtually impossible to make accurately IMHO.

Someone answered:

https://www.aqr.com/Insights/Research/Alternative-Thinking/2019-Capital-Market-Assumptions-for-Major-Asset-Classes

AQR is transparent about their methodology, both in piece linked to and in other pieces they reference in the footnotes.