AMWatch

Decade of low equity, bond returns to force savings into alternatives

Jesper Rangvid, professor of Finance at Copenhagen Business School, predicts a decade of historically low returns on US equities and government bonds. That will have significant implications for both investment assets and costs, he says

Professor Jesper Rangvid | Photo: CBS

Jesper Rangvid, a leading Danish academic researcher and professor of Finance at Copenhagen Business School, expects historically low returns on US equities and bonds for the next decade.

According to a model built by Rangvid, investors should expect an average annual return after inflation for the Standard & Poor’s 500-index of about 1.9 percent for the next ten years, and an average annual real return on US government bonds of about 1 percent.

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