In the 2017 Bogleheads Annual Conference, Jack Bogle gave his predictions about the future returns people can get from stock and bond markets.
He suggested that in the next 10 years, the stock market annual return will be 4%. This includes 4% from earnings growth, 2% from dividend yield, and -2% from speculation (e.g., investors’ negative feelings about the future).
This return is lower than the present (since 1974, the annual stock market return has been 11.7% on average)
Bogle also suggested that in the next 10 years, the bond market annual return will be about 2.6% from income and there is no capital appreciation. Again, this return is lower than the present (8% since 1974).
In the Q&A session, Bogle gave his explanations about the market returns in the future. He explained why investors’ returns from the markets will decline in the near future.
Warning: This video is to show you John Bogle’s view about the market return in future. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane (Shared via CC-BY)
