Future Investment Earnings

                       

There’s a major disconnect among investors on Main Street and Wall Street about what they expect to earn from their securities portfolio over the next ten, twenty, even fifty years, after tax and inflation.

                       

Admittedly, that is a tough prediction because investors must take income taxes and inflation into account, along with projected securities’ yield and market returns. None of that is simple.

                       

In one survey, net/net/net predicted return by a number of experts, over the next fifty years, predicted  returns ranged between 2% and 3% annually.

                       

That is unusual and shocking. Investors’ experience from the past would have had expectations of close to 6%.

                       

In other words, many securities market observers believe that potential, along with taxation and inflation bites, will reflect dismal future market returns. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)