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Topic: US stock market's annual return is going to be 3~5% p.a. over the next 10 years (Read 324 times)

hero member
Activity: 1666
Merit: 753
Why is this even worth talking about? I don't get it.

3-5% seems like a fair amount to put the average growth at, given the fact that over the very long run, this seems to be some sort of equilibrium rate of return on equities anyhow. It can actually be quite a pessimistic outlook given that we can see stock markets rise in double digits in years with strong economic growth.

Whether this is accurate or not is could be up to debate, but it's certainly not an attempt to "shill" anything.
member
Activity: 394
Merit: 14
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?
To be honest, I don’t know what capitalization of the US stock market is. Therefore, I simply have nothing to compare with.But the topic is very relevant.Indeed, many Americans in order to reduce the payment of taxes spend in the second half of December a lot of money to buy shares.
hero member
Activity: 2884
Merit: 794
I am terrible at Fantasy Football!!!
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?

They're just projecting from the present into the future.

The reality is that the bull market is now old and tired and just needs a shock to bring it down. Or just needs enough people just cashing out for their retirement to start a selling spree.
This is probably the right answer, those kind of models most of the time assume a linear kind of growth for stocks and we know stocks do not move like that, what this probably indicates is that the bull run of stocks is most likely over and we are about to see a crash in that market during the next years, this will make the price of most of stocks to be undervalued and while a great deal of investors are going to lose money this will create an opportunity for those with cash reserves to take advantage of it and buy many great stocks at good prices.
sr. member
Activity: 896
Merit: 268
★777Coin.com★ Fun BTC Casino!
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""
Predictions once again. Still unsure with this though if it became real then US stock market were good to put the invest with.
Quote
The problem is: Are economists trustworthy or they are just trying to shill you their US stock?
Depending on who claim such idealism. Though big names are not trustworthy as well. Sometimes they made silly predictions.
Quote
Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?
They already did specially way back in december 2017. Well if you have alts to hodl back then and sell it during such heavenly situation you have already beaten up stock market annual return. In addition, there is an incoming halving in mid 2020, thus, we might experience again an outbreak in the market.
legendary
Activity: 2310
Merit: 1035
Not your Keys, Not your Bitcoins
The problem with all these predictions is that they don't account for inflation. The US dollar inflation is rougly around 1.50%/year that means that 3-5%/year return will be around 1-2%. Most people think that stocks tend to raise over time in value, but is that true? I would say no.. most people look at the S&P 500 which is an index that is ever changing. They are switching stocks, not keeping those forever. Then where do you put the inflation? This is not financial advice and should not be interpreted in that way but in my opinion Bitcoin is a much better play. Smiley
legendary
Activity: 1652
Merit: 1088
CryptoTalk.Org - Get Paid for every Post!
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?

They're just projecting from the present into the future.

The reality is that the bull market is now old and tired and just needs a shock to bring it down. Or just needs enough people just cashing out for their retirement to start a selling spree.
sr. member
Activity: 2422
Merit: 357
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?
Its pretty low rate to grow your money but of course it is more safe compare to crypto. Cryptomarket can make your money double in just a month, and the average i think is that above 20% or more especially with good coins. Economist wants to boost the market of US to prevent any crisis again, but since people are more educated nowadays, stocks is a slow way of making money but still reliable.
hero member
Activity: 1008
Merit: 510
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?

That stock market growth is very low especially considering inflation. Bitcoin and major altcoins should far exceed that because they are deflationary.
legendary
Activity: 2562
Merit: 1441
Think of all the economists and media personalities predicting catastrohic recession atm.

Then look at the following chart detailing stock performance before, during and after recessions.



My conclusion is the official narrative being hijacked for political, profiteering or assorted motives, as has become common in this era. History suggests real recessions lasting longer than 12 months, and stock market growth, usually do not occur simultaneously. The recession prediction or the stock growth prediction may be inaccurate.

I think they want investors to buy US stocks to suit their own agenda. The prediction is wholly unrelated to actual projected future stock market performance.
hero member
Activity: 1008
Merit: 531
3-3.5% isn't that good, and I'm not really sure if those numbers are that accurate. Most advanced economies like the US & China have already slowed down in economic growth and I'm not sure how their companies will be able to increase their share prices if the outlook for everything is fairly bleak. The big money is in developing countries now, those ones have a lot of room to grow and look huge.

Crypto is definitely going to be a lot bigger than just 3%, but it could also go to shit, so I wouldn't really compare the 2, not really fair.

See the problem now with Bitcoin and crypto? It's made everyone just think in wholly unrealistic settings. 3% annual return on stocks is a really, really good thing, compounded that's easily over 40% in a decade. In the US that easily overcomes the inflation for US dollar.
Okay, I definitely see your point here, a free 3-3.5% interest for a relatively low-risk investment per year is definitely great for a lot of fiat investments, although with bitcoin often doubling/tripling your money if you're playing your cards right, it's pretty hard to pass up.

I reckon the biggest issue at fault here, is the natural inflation rates that every country goes through per year, which is usually around 2-3%, a lot of people don't end up realizing, but oftentimes, putting your money in a savings account actually loses you money since those rates are lower than inflation, and when your looking at this entire system, you realize, unless your profits are over 2.5% a year, you are likely losing money.

And that is why me and a lot of other people deviate towards crypto-currencies.
legendary
Activity: 3178
Merit: 1054
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?

almost sure the news are just shilling for the US stocks. all of them from penny stock companies, the industrial companies of dowjones, NYSE to nasdaq and government officials are all being manipulated by media releases every week all to inflate prices and people who kept reading the index every weekend believe all while the company owners are shorting it to them.

the future is crypto. the companies in stocks and bonds may probably shift to blockchain so one day we'll see those companies in cryptoexchanges.
legendary
Activity: 2968
Merit: 3684
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Just remember, that we will have US stock market bubble burst in the next few years, starting a global recession.

This is guaranteed - after WW2, we have a recession every 7-10 years - the last one finished right before BTC came to existence.

So then even if you will see 3-5% ROI on stocks, be aware that you might lose 50% first.

Yeah and I've heard of people countering this by saying be aware you could lose 95% on Bitcoin first before seeing any gains. They're right of course, and people should be aware in Bitcoin that pullbacks are severe, far more than any other asset they've experienced. This shock is what jolts people out of it.

Worse still if they go into an asset that isn't Bitcoin. The majority are in those 90%+ pullbacks and haven't recovered. At least Bitcoin went -85% but is now at -55%!
legendary
Activity: 3276
Merit: 3537
Nec Recisa Recedit
Negative rates and other options adopted by Central Banks seems have a positive impact in stock markets.
And Trump politics "pro-company" seems also have a good outlook on USA share value.

Crypto Economy is just a tiny portion of current value of USA principal stock markets, so a big impact can be very disruptive for all crypto coins. Probably most of traders and venture capitalist will continue their focus on well known brand/stock, since there are these positive outlook for the markets, and so far in this environment, anyone can understand how it works a company listed in a stock exchange Wink
hero member
Activity: 1330
Merit: 569
Direct quote ""Economists at investing giant Vanguard predict over the next 10 years annual U.S. stock market returns will likely average 3% to 5%""

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?

And,

Can crypto beat the annual return of general stock market?

What's your prediction on crypto-economy?

First and foremost, its just prediction which means it can either be true or false and no one will be jailed for it because its mere prediction as the market forces and output might eventually negates what is being predicted. However, I would literally believes the prediction because it concerns a market that several factors can be held constant and when that holds, the result is almost sure to remain the same.

Comparing crypto with stock market will be wrong and they are not likes however, they could be used as a means to evaluate return in other to establish the right point to invest resources.  On returns perspective, I strongly hold that crypto will do more than stock market.
member
Activity: 476
Merit: 88
Online Cryptocurrency Exchange
Just remember, that we will have US stock market bubble burst in the next few years, starting a global recession.

This is guaranteed - after WW2, we have a recession every 7-10 years - the last one finished right before BTC came to existence.

So then even if you will see 3-5% ROI on stocks, be aware that you might lose 50% first.
legendary
Activity: 2968
Merit: 3684
Join the world-leading crypto sportsbook NOW!
3-3.5% isn't that good, and I'm not really sure if those numbers are that accurate. Most advanced economies like the US & China have already slowed down in economic growth and I'm not sure how their companies will be able to increase their share prices if the outlook for everything is fairly bleak. The big money is in developing countries now, those ones have a lot of room to grow and look huge.

Crypto is definitely going to be a lot bigger than just 3%, but it could also go to shit, so I wouldn't really compare the 2, not really fair.

See the problem now with Bitcoin and crypto? It's made everyone just think in wholly unrealistic settings. 3% annual return on stocks is a really, really good thing, compounded that's easily over 40% in a decade. In the US that easily overcomes the inflation for US dollar.

Note, I'm not defending the stocks or fiat at all, just pointing out how ridiculous people's expectations have become to think 3.5% isn't that good.

Also, stock market growth doesn't directly correlate with economic growth, not in the US. S&P in the bullrun tripled after the last economic crisis, that hasn't been the case for GDP.

You are right about outlook and expectations, though.
hero member
Activity: 1008
Merit: 531
Let me help others that are looking into this topic. Here's the link below from what I searched

https://www.cnbc.com/2018/07/06/vanguard-youll-make-less-money-in-the-market-over-the-next-10-years.html
Please add this link to the original thread OP, it'll help the people to understand your points a bit more.

I think it has been taken out of context a little bit because the article where you have probably get that is not a shill. It's not to entice other people to invest, and it's to let people know that there are other things you could do with your cash, which is true. Instead of just investing in the stock market, try different options like:
  • Investing in your education
  • Save money for another investment not just keeping it in a bank
  • Have emergency funds
  • Have no debt
That's what I got off it as well, the structure is actually fairly similar to a lot of the global economic reports I've read previously, (The IMF Outlook ones come to mind), and it's just providing estimates via stats.

Maybe a lot of people would look into Bitcoin or any other cryptocurrencies out there to invest in, and you would soon realize that it's another instrument that could give you profitable results as long as you know what you are doing. Having a larger volume in crypto would affect the price, and not just that, it could also affect the US Stocks exchange, etc. I do think it's the future, and we need to believe that it's going to happen.
Personally, I reckon the best thing for most people to invest in (excluding crypto-currencies of course), if they have enough capital - real estate. The market has always been steadily going up and it's a fairly good long term investment.
full member
Activity: 1554
Merit: 116
0xe25ce19226C3CE65204570dB8D6c6DB1E9Df74AC
People are gullible, seem everyone just forget the last market crashes and leave thousands of investors homeless or even kill thenselve over the return, I’m amused by the statement, the only stock that even growing in U.S. stock is the DJIA index, which is further adjusted “price weighted average” from “market cap weighted average” to fool yet another gullible investors money, a 3 to 5% return and countless homeless and dead people, is it really worth it?
copper member
Activity: 2940
Merit: 1280
https://linktr.ee/crwthopia
Let me help others that are looking into this topic. Here's the link below from what I searched

https://www.cnbc.com/2018/07/06/vanguard-youll-make-less-money-in-the-market-over-the-next-10-years.html

The problem is: Are economists trustworthy or they are just trying to shill you their US stock?
I think it has been taken out of context a little bit because the article where you have probably get that is not a shill. It's not to entice other people to invest, and it's to let people know that there are other things you could do with your cash, which is true. Instead of just investing in the stock market, try different options like:
  • Investing in your education
  • Save money for another investment not just keeping it in a bank
  • Have emergency funds
  • Have no debt

It's best to make the most out of your money that isn't going to cost you more than you already have. Having the right mindset would give the best result that you could have, and I think educating yourself is one of the best ways to attain success.

What's your prediction on crypto-economy?
Maybe a lot of people would look into Bitcoin or any other cryptocurrencies out there to invest in, and you would soon realize that it's another instrument that could give you profitable results as long as you know what you are doing. Having a larger volume in crypto would affect the price, and not just that, it could also affect the US Stocks exchange, etc. I do think it's the future, and we need to believe that it's going to happen.
hero member
Activity: 1008
Merit: 531
3-3.5% isn't that good, and I'm not really sure if those numbers are that accurate. Most advanced economies like the US & China have already slowed down in economic growth and I'm not sure how their companies will be able to increase their share prices if the outlook for everything is fairly bleak. The big money is in developing countries now, those ones have a lot of room to grow and look huge.

Crypto is definitely going to be a lot bigger than just 3%, but it could also go to shit, so I wouldn't really compare the 2, not really fair.
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