Based on the valuation measures most strongly correlated with actual subsequent total returns (and those correlations are near or above 90 %), we continue to estimate that the S&P 500 will achieve zero or
negative nominal total returns over horizons of 8 years or less, and only about 2 % annually over the coming decade.
Not exact matches
They also warn that because of extended zero - interest policy by the Fed, security valuations have advanced to the point where prospective
nominal total returns on a conventional portfolio mix are likely to average well below 2 % annually, with
negative real
returns, over the coming 12 - year period.
On the basis of
nominal total returns (including dividends), we estimate zero or
negative returns for the S&P 500 on every horizon shorter than about 8 years.
On valuation measures most strongly correlated with actual subsequent S&P 500
nominal total returns, we presently expect
negative total returns for the S&P 500 on a 10 - year horizon, and
total returns averaging only about 1 % annually over the coming 12 - year period (chart).