Excerpt from Yahoo Finance quoting DataTrek’s Nick Colas:
…. “In a note to subscribers on Friday, DataTrek Research’s Nicholas Colas observed that historically, 20 years is the shortest period during which the S&P 500 (^GSPC) always produces a positive return. On average the annual returns are 10.7%, with a peak average return of around 17%.
Colas notes that past periods of long-term above average returns were powered by bullish market backdrops, which seem unlikely to repeat.
“We can safely rule out a Volcker era-like period of declining interest rates that juice equity valuations,” he said. “We can also exclude a period of American global economic preeminence like the 1940 – 1950s unless China’s rise grinds to a sudden halt. The same sentiment applies to US population growth, which was 1.7 percent/year in 1961 (first peak S&P 20-year return) but just 0.3 percent now”….
Read the full article here on Yahoo Finance!