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Jeremy Grantham, a market investor who is credited with predicting the 2000 and 2008 downturns, said that other investors should get used to more lackluster returns in the stock market in the next 20 years. Grantham says that the poor returns will “break a lot of hearts.”
Grantham told CNBC that after a century of handsome gains investors should get inured to lackluster returns in the stock market for the next two decades, according to Market Watch.
Years - % - United - States - Market
“In the last 100 years, we’re used to delivering perhaps 6%, but the United States’ market will be delivering real returns of about 2% or 3% on average over next 20 years,” the value investor and co-founder of Boston-based asset manager GMO told CNBC in a rare interview.
In spite of the stock market’s plunge in the latter portion of 2018, Grantham believes his prediction is correct because he views the market as still pricey.
Lot - Hearts - Grantham
“This is not incredibly painful, but it’s going to break a lot of hearts when we’re right,” Grantham was quoted as saying.
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