Written by Portfolio Manager Iain Stewart, the Perspective on Returns paper delivers insights on:
- Why we anticipate lower returns and a more volatile financial environment
- How we believe expected returns do not compensate for the risks being taken in many markets
- How policymakers are getting caught in a trap of their own making
- Why we think investors should not chase market upside to make a decent longer-term return
- Why the last cycle seemed to fit our model, and why we think this cycle may be a rerun of the last
Then and now – a different world
Mapping the profound transformation of the investment landscape since the early 1980s
For illustrative purposes only.
Source: Bloomberg, Bureau of Economic Analysis, Thomson Reuters Datastream, US Census Bureau, Newton, January 2018.
* 10 years of earnings used to remove the effect of the economic cycle from the P/E calculation