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Studies have shown that a portfolio of public stocks will have diminishing returns across generations.
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THE declining return from public stocks is a phenomenon that has crept up on us over a few decades.
This is the conclusion of several studies - including one by Credit Suisse last year that demonstrated how a globally diversified portfolio comprising a 70-30 mix of public stocks and bonds would show diminishing returns across generations.
On average, Baby Boomers could earn 6 per cent per annum over their lifetimes. This drops to a projection of just 2 per cent for Generation Z.
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