After three consecutive years of double -
digit equity market returns [2], there was less focus on the need for downside protection.
Not exact matches
Through November 2017, US and many global
equity markets were up double -
digits, and broad corporate and emerging -
market debt indexes posted strong
returns as well.
The basis of my assertion that
equity market returns over the next 10 years will likely be in the low single
digits, if not negative, is my belief in the irresistible force of mean reversion.
If Democrats win a majority in the House of Representatives this November, history tells us that U.S.
equity -
market returns have been lower under this scenario, but they still have been double -
digit returns (on average).
While the prospect of higher interest rates will keep investors on edge, it's not like we're
returning to double -
digit levels or the Fed is moving its terminal rate.So even the uptick in ten - year yields to 3 % or even 3.25 % is unlikely to kill the
equity market rally as the benefits from fiscal stimulus should continue to feed through the
markets.
Strong performance was not confined to the U.S. as most of the major global
equity markets posted double -
digit returns as well.
While real estate will benefit from continued growth, U.S. property
markets are close to equilibrium, which should result in inflationary rent growth and
returns in the single
digits for core real estate and
equity real estate investment trusts (REITs).»