McKinsey Global InstitutePosted on 04/27/2016 5:26:17 PM PDT by SeekAndFind
The "golden age" of stock market returns is over.
That's the summary of a big piece of research from the McKinsey Global Institute (MGI), which estimated returns over the next 20 years in US and Western European markets under two scenarios. The first assumes that today's slow-growth environment remains, while the second models faster growth as technology improves.
It concluded that in neither case would returns match those of the past 30 years. For US and European stocks, the difference between past and future annual returns could range from 1.5 percentage points to 4 percentage points. The gap for fixed-income could be even wider, between 3 and 5 percentage points for most countries, the report notes.
"What's surprising is that even if there's higher GDP growth, we find that returns in equity and bonds over the next 20 years would still be lower," Susan Lund, a partner at the institute and one of the coauthors of the report, told Business Insider.
McKinsey Global Institute
McKinsey Global Institute analysis
That means investors will have to save more, retire later, or live less comfortably during retirement, which could further drag down economic growth. A seemingly small difference in numbers can actually be pretty scary.
(Excerpt) Read more at businessinsider.com ...
Nah. The bankers will get a big fat war going that will kill millions and we will all be saved!
Probably a “buy” signal. (Rachel Butt???)
With a decent President, it might only be 2 or 3 years. If more democRats are elected, it might be 20 or 30.
Trump is winning - all is lost!
Look for a lot more depressing articles now - financial collapse, medical crisis, popped bicycle tire epidemics, lost puppies, you name it.
Doooooooooooooooooooom!
Lolololololololololol!
It is almost always possible to make money in the stock market. The gyrations of prices virtually guarantee that sooner or later good companies will be sold cheaply. If you buy good companies at low valuations, you will seldom lose.
PS. There is certainly nothing worth buying right now!
The stock market is all smoke and mirrors anyway. I expected the bubble to burst a long time ago. Maybe now it will be more realistic.
Don’t we need a pretty severe correction? If/when, then it’s just buying on sale.
Yup. Predictable. Starting early.
The U.S. dollar will be destroyed this year.
The stock market will be of no concern to us.
The “golden age” of stock market returns is over.”
I see they choose the last 30. Just go with 10 and be done with it.
Well I’m just fupped.
Me and millions
We are way past due for the bubble pop.
Somebody or something is holding back the big bust. It’s an election year, so my tinfoil is always on during campaign season.
I’m also shocked that the balloon hasn’t gone up yet on our fake stock market.
One of my faves is the 401K which was sold by Teddy Kennedy and the dems as a supplement to your retirement, and then the Pubbies spent ages sayin this SHOULD BE your retirement
For 30 years I have heard the arguement that the big companies and unions got greedy so here is your 401K option, “and its freakin easy!” any johnny lunch bucket can do it! LOL
But the Finance wizards at the huge employer were unable to figure the pensions out.
May I suggest we are getting screwed from both ends?
Hows that FREE healthcare workin for ya?
We are on our own folks and most of your neighbors lie to you about thier balances
Most IF NOT ALL
This market is going south BIG TIME for two reasons. 1. No more rape of jobs (going to China) !! 2. We are going to reinstate normal banking practices ( Dodd Frank is a communists law) and interest rates with a major overhaul of the FED. You might buy a CD again!!
But Trump is RICH! Rich I tells Ya!
If I could just touch the garment of his robe..
I could be rich too!
And I aint dinging on Donald, or anyone here
its just a gut feeling.
Why did I invest in LPs instead of Cds? LOL
Ahh well.
To late now.
The guns are working way better than the stock market
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