'To achieve above-average returns in the next decade, investors need the correct structures and exposure to the correct asset classes.' - Dr Francois Stofberg. Moneyweb Investmnets
After more than a decade of above-trend market performance, many developed markets have started a process of mean reversion. Many leading global banks and asset managers believe the average annual share performance among companies in the US will only be 5% in USD over the next decade. This is far less than the above 20% annual growth often seen over the past decade.
It means that simply buying a passive instrument that tracks the market, overweighted by the largest, mostly US technology companies, which benefit most from historically-low interest rates and yield-curve control, will not be sufficient to generate above-average returns. To achieve above-average returns in the next decade, investors need the correct structures and exposure to the correct asset classes. The ‘fee’ swear word Please note that I purposefully do not mention fees.