By: Tan Kin Lian
Dear Mr. Tan,
Please give your comment on this article
Don’t expect another bull market
Stock returns may never be the same – at least for this generation of investors.
The author said that for the past 20 years of the bull market, the stock market produced a return of 19% per year. He does not expect this kind of return in the future.
Over a longer period of 56 years, the stock market return was 9% per year.
For the future, the author said that he is reasonably confident that “stocks are likely to outperform high-quality bonds in the long term” 30-year Treasuries now yield about 4.5%.
I agree with the author. I expect stocks to yield about 6% in the future. I have indicated this as the likely return for the future. This is better than bonds, and is more suitable for a long term investor.
Source: Tan Kin Lian’s Blog