I have to state that in my view if you are a prudent investor you are not going to make a lot of money in equities over the next three years. Maybe one company will go up 10 times and 900 companies would not. You have to take big risks if you really want to make a lot of money. My return expectations are very low.
In Europe, in 2017, the Austrian government issued a 100-year bond. The coupon was 2.10%. It was issued at a 100, the interest the 2.10% which is not a lot but people buy these bonds and you are not going to make a lot of money out of these bonds. Now you made a lot of money by buying US treasuries over the last six months. The stock market in the US is not higher than it was in January 2018. In other words, 18 months ago we have been trading sideways and that maybe the pattern that we have to look for. So in terms of return expectations, investors have to really lower their long term expectations.
via economictimes
