Adjust expectations as equity returns are low, investors told

WITH stock-market returns being moderate for the foreseeable future because of low inflation, investors should be realistic in their expectations, an investment strategist has advised.

Bill Maldonado, chief investment officer (CIO) for the Asia-Pacific in HSBC Global Asset Management, said: "Over the next decade, you can expect equity returns of about 6 per cent - real return on top of inflation."

Globally and regionally, inflation is not a problem and will be fairly subdued, as growth is still below trend, said the Hong Kong-based CIO, who was recently in Singapore to meet his institutional clients.

Economies have excess capacity…