Sunday, October 16, 2016

Future Common Stock Investing Gains

              
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 taxes and inflation.
                     
Admittedly, that’s a tough prediction when investors must take income taxes and inflation into account, along with projected securities’ yield and market returns.
                     
In one survey, the net/net/net predicted return by a number of experts over the next fifty years, estimated returns ranging 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.)

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