William Baldwin, of Forbes, says returns on stocks in the next 25 years will likely be less than *half* the historic average. He's looking for a long-term average real return of 3 percent, versus the 7 percent average for the past century or so. Jack Bogle's forecasted returns aren't quite that low, and Bogle's talking only about the next 10 years.
"My sad forecast is not built on any gloomy view of where the economy is going," he writes. "Nor does it assume any slackening in corporate growth. It’s simply an arithmetic inevitability having to do with earnings yields. This is bad news for retirees and future retirees. If you are still working, plan on working longer and saving more of your paycheck. If you’re retired, live frugally."
Read his column here: https://www.forbes.com/sites/baldwin/20 ... 9157247c75
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