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Getting Real About Portfolio Returns – Smarter Investing

by investing.ibkram.com posted 2years ago 70 views
Returns may be in the 3% range during the next 8 to 10 years. : Tadas Viskanta, editor of the excellent financial blog Abnormal Returns, asked a group of financial bloggers the following question: Assume you are advising a pension fund, endowment or foundation. What is a reasonable long-term expectation for real returns for a well-diversified portfolio? The answer varied, but it seems like the consensus was somewhere in the ballpark of 2%-3%, though some had estimates of 5% or better. We all know the standard answer: stocks “always” return 7% to 10% per year.

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