With a Little Work, Your Investments Don’t Have to Be Ugly
Earlier this week an article from Bloomberg.com titled “The Next 10 Years Will Be Ugly for Your 401(k)” circulated on Apple news. The article is based on research from California-based Research Affiliates and concludes that in an environment of low interest rates for U.S. bonds and high valuations for U.S. stocks, the outlook for future returns from those asset classes is low. Specifically, the article goes on to state that an investor has a 0% chance of earning a real (after inflation) annualized return of 5% over the next 10 years. Our team shares three main thoughts in regard to this article.