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Spooked About a Low-Return Environment? Don't Make These Mistakes

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Few responsible market watchers are predicting that Armageddon is nigh for the stock and bond markets. Instead, a more common viewpoint, from everyone from Vanguard founder Jack Bogle to the folks at Research Affiliates to the researchers at Charles Schwab, is that U.S. investors are apt to experience muted returns from the stock and bond markets for the next decade.

About the Author Christine Benz is Morningstar's director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. Follow Christine on Twitter: @christine_benz.Contact Author | Meet other investing specialists In a recent interview, Bogle pointed to simple mathematics to explain his forecasts. For stocks, he combines dividend yield (currently about 2% for the S&P 500) with projected earnings growth, which he expects to be about 5% over the next decade.