By Buttonwood
What are the likely long-term returns from various asset classes, based on the most probable economic outlook and the past record of valuations and returns? These are the essential questions for investors and cannot, of course, be answered definitively; we can only make assumptions on our interpretation of the evidence. But there can be few better starting points than Deutsche Bank’s long-term asset return study, put together by Jim Reid and his team. (Alas, it’s a research note sent to clients so no link is available.) It covers a wide range of issues from secular stagnation to a survey of geopolitical risk going back to Alexander the Great (which I hope to return to in another post).
