Common Stock Investing Prospects

                      

There are major disconnects among investors about what they expect to earn from their securities portfolio over the next ten, twenty and more years, after tax and inflation.

                       

Admittedly, that’s a tough prediction because investors must take income taxes and inflation into account, along with projected securities’ yield and market returns. That isn’t simple.

                       

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

                                           

That is shocking. Investors’ experience from the past would have had expectations to be close to about 6%.

                       

In fact, many securities markets observers believe that potential, along with taxation and inflation bites, will badly impair future market returns. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)