Source: Research Affiliates
Rob Arnott of Research Affiliates writes:
In a world of low bond yields and slow economic growth, historically realized 5-6% real (7-8% nominal) asset class returns may be unrealistic expectations for the future.
In other words, assets with above-average valuations may not deliver the sort of returns people came to expect before the credit crisis.
What’s an investor to do?
Thankfully, we have a chart.