Vanguard warns of 5-8% equity returns a year for next decade; 2-3% for bonds
Some factors: High current valuations, low interest rates, ageing populations, rise of technology
Tokyo
THE world's biggest mutual fund company says it's surprised by the global economy's strength this year, but that doesn't mean it's more optimistic about the investment outlook.
Investors should brace for a decade of "muted returns", said Nathan Zahm of Vanguard Group, reiterating the US$4.5 trillion money manager's view that equity returns will drop to 5 to 8 per cent per year, while those for bonds will decline to 2 to 3 per cent.
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