Some Ideas for Investing in a Low Return Environment

There is a very strong likelihood that returns for investors over the next decade will be significantly lower than what we have seen in the past ten years. With the trailing ten-year return of the S&P 500 at around 10% and the ten-year return of a 50-50 stock and bond portfolio at a little less than 7%, investors have become accustomed to above average returns. But long-term data indicates that these ultra-strong returns are very… Read More

AQR’s Antti Ilmanen Predicts Low Returns

Low expected returns are going to anchor bad news for all of us for the rest of our working lifetimes, warned AQR principal and researcher Antti Ilmanen at the 2016 CFA Institutes European Investment Conference. This according to an article earlier this month in Enterprising Investor. “I’ve got bad news as a starter,” Ilmanen told the conference audience. He suggested that for a balanced portfolio, the real return would be closer to 1% annually than… Read More

Paltry Returns May Be Here to Stay

The low-return environment that currently exists for investors (notwithstanding the increased risk they are assuming) could be “on the menu for years to come,” says London-based Fixed Income Research Analyst Lior Jassur in a recent article for Barron’s. While short term volatility could create investment opportunities, Jassur argues that in the long term most investment professionals expect returns to be well below historical levels. He offers the following rationale: Public debt is on the rise:… Read More