GIS - Why The Stock Market Could Deliver 7.96% Long-Term Annual Returns From Here
- The market's long-term returns correlate strongly with a "total cost of capital" formula that takes into account interest rates, inflation rates, and the earnings yield on stocks.
- Since 1900, whenever the "total cost of capital" equals the cost that we have today, future annual stock returns come in at 7.96% on average.
- Arguably, today's "total cost of capital" and earnings yield are similar to those from the years 1912 and 1952, with future nominal returns of 4% and 12%, respectively.
- My personal investment holdings and strategy.
For further details see:
Why The Stock Market Could Deliver 7.96% Long-Term Annual Returns From Here