Faculty Publications


The Sky Could Be Falling: Where Are Equity and Bond Yields Going?

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A recent McKinsey Report entitled “Why Investors May Need to Lower Their Sights” paints a grim picture for returns on US equities and bonds over the next 20 years. The conclusion is the past 30 years have been a golden era for US investors as the real (that is, inflation adjusted) return on US stocks and bonds were 7.9 percent and 5 percent, respectively.