4.6 • 2.8K Ratings
🗓️ 11 November 2024
⏱️ 27 minutes
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Investopedia recently published a report stating they expect the average annual return over the next decade to shrink. It sure sounds a lot like what Vanguard said at the end of 2021. But were they right?
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0:00.0 | Weathermen and investment experts. They get it wrong. So now what? |
0:12.1 | Brent, I am so excited about this because we live in a financial world where they're |
0:16.9 | constantly telling us there are things to be nervous about, things to be scared of, |
0:21.2 | things that should be worrying us. |
0:22.9 | And I love that we get to be the voice of reason that helps you separate the fact from fiction |
0:28.7 | and understand what true things exist out there that ought to influence your investing behavior. |
0:35.1 | So I do like I do every week. |
0:37.2 | I'm the vortex of wasted time. |
0:39.9 | Right. And I walk around the office and still everybody's productivity talking to them. And I |
0:44.6 | walked by the content space and Nick said, hey, Brian, what would you say? Did you hear what |
0:50.5 | Goldman Sachs just came out and said? They said that the stock markets basically go underperform |
0:55.3 | for the coming next decade. And I was like, oh, come on. Are they pulling those type of things? |
0:59.8 | Yep. Again, because if it's not Goldman Sachs, it's Vanguard. And I think Vanguard's last prediction |
1:06.7 | was like, expect 3.8% every year for the next. That's what's going to annualize. |
1:11.5 | And I'm like, these guys, I can't believe they can come out with, but I get it because |
1:14.6 | they get a lot of headlines, they get a lot of attention, a lot of eyeballs, a lot of fear. |
1:19.9 | And I'll even talk about the business aspect a little bit later, but let's jump into what |
1:23.8 | what's going on here. |
1:25.2 | Well, this is what Goldman said. They said wave goodbye to the stock |
1:28.3 | market's historic run. And they are dropping their estimates over the next decade from 13% |
1:34.3 | returns down to 4% returns. And you already alluded to it, Goldman Sachs is not the only one that's |
1:38.9 | doing this back in 2021. And we could go even further back than 2021, but Vanguard in their 2021 report that said |
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