Vanguard 10-Year Expected Asset Class Returns (2018)I was surprised to read the NY Times article Vanguard Warns of Worsening Odds for the Economy and Markets. Everything is written very carefully using odds so that there is no “prediction” that could be called “wrong” later on, but at the same time if there is a future recession, they will appear to have been “right”. I didn’t know that Vanguard did these sort of economic predictions or that they were deemed so noteworthy.

As the chart below reminds us, all bull markets must eventually come to an end:

risefall_720b

The question is, what is the point? What is actionable about this? You could view this article as encouraging market timing (sell stocks now!), or it could be a prudent reminder to rebalance and assess your risk exposure (sell a little stock now? maybe?). The latter is always a good idea, so let’s be generous and call it that. I wonder what Jack Bogle thinks. I mean, the title of his upcoming book about the history of Vanguard is Stay the Course.

For posterity, I wanted to record their expected 10-year (annualized) returns for the following asset classes (as of mid-2018):

  • US Stocks 3.9%
  • International Stocks 6.5%
  • US Total Bond (Corporate + Government) 3.3%
  • International Bonds 2.9%
  • Commodities 5.9%
  • US Treasury Bonds 3%
  • Cash 2.9%

These are nominal numbers. In another economic outlook article, Vanguard projects inflation to run slightly under 2% annualized.

Vanguard 10-Year Expected Asset Class Returns (2018) from My Money Blog.


© MyMoneyBlog.com, 2018.

©

Related Posts

Vanguard 10-Year Expected Asset Class Returns (2018)Vanguard 10-Year Expected Asset Class Returns (2018)
Inside Track: January 8th – January 14th...
Here are our hand-selected favorites from eBay for this week,...
Read more
Clean Portfolio Template for Adobe InDesignClean Portfolio Template for Adobe InDesign
Clean Portfolio Template for Adobe InDesign
Using this customizable InDesign template, you can create an eye-catching...
Read more
Alicent Hightower and Rhaenyra Targaryen face each other against a backdrop of the Iron Throne.Alicent Hightower and Rhaenyra Targaryen face each other against a backdrop of the Iron Throne.
Rhaenyra and Alicent reunite in the 'House...
The best change House of the Dragon ever made from...
Read more
danielle-orchard-pensive-art-7.jpgdanielle-orchard-pensive-art-7.jpg
Danielle Orchard
Danielle Orchard is a New York-based painter zooming on the female universe. Her...
Read more
Object Carpet X Ippolito Fleitz Group, Textile Design Set | YellowtraceObject Carpet X Ippolito Fleitz Group, Textile Design Set | Yellowtrace
OBJECT CARPET x Ippolito Fleitz Group’s New...
WALK x TALK is a discreet and minimalistic carpet that...
Read more
Vanguard 10-Year Expected Asset Class Returns (2018)Vanguard 10-Year Expected Asset Class Returns (2018)
Unveiling Kia PV5 and PV7: The Future...
Kia’s unveiling of the Concept PV5 and PV7 marks a...
Read more