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Above-Average Returns: Why The Next Decade Differs
Above-Average Returns: Why The Next Decade Differs Authored by Lance Roberts via Real Investment Advice,Sixteen years of above-average returns came mostly from rising valuations, and that is the one source that cannot be repeated from here.Key TakeawaysSince the end of 2009, the S&P 500 compounded at 14.34% a year, or 11.41% after inflation. The long-run real average since 1881 is 6.72%.Of that 11.41%, some 4.33 points a year came from nothing but the valuation multiple doubling.Across 146 years, 140 of the 164 starting months with a CAPE of 25 or higher produced a below-average n