Strategies: Now the Long Run Looks Riskier, Too, for Investors (nyt)
What about Professor Siegel’s finding that the stock market has produced an annual average inflation-adjusted return of close to 7 percent since 1802? In an interview, Professor Pastor emphasized that the last two centuries could easily have been less hospitable to the United States, most likely lowering the stock market’s returns. An investor couldn’t have known in advance that the United States would win two world wars, for example, or emerge victorious from the cold war. In any case, he said, there is no guarantee that the next two centuries will be as kind to the domestic equity market as the last two.
