Since March of 2009, the stock market’s annualized return has averaged more than 17%. Does this portend another strong decade ahead? Hopeful analysts and investors are clinging closely to the old adage “the trend is your friend.”
Yet, is 17% a reasonable expectation? What were the sources for that level of return and will those drivers continue to deliver?
This article discusses the headwaters of total return, the contribution from each tributary over the past eight years, and reasonable expectations for the next decade and longer.