This will be a short post but I cannot help but share this with you:
1) Chris Brigthman, Chief Investment Officer of Research Affiliates (no small feat to achieve that particular position at that company), stated recently that over the next decade a 60% large US stock/40% US bond portfolio is expect to return just 4.3% annually, and only 1.3% after inflation! That is crazy low returns. Investor, take heed.
2) From the WSJ recently, Robert Shiller's cyclically adjusted price/earnings ratio (known as the CAPE ratio) stands at 27.1. It's long term average is 16. SIXTEEN. Crazy high currently. Note the following, and definitely take heed: "today's valuation falls into the top tenth of historical observations, since data from the 1880s. When CAPE is in the top decile, as it is now, the S&P 500 subsequently averages about 4% annually for the next 10 years."
What do you think will happen? I personally only believe there are small pockets of value left. Otherwise, the only solution is to hold cash, or switch to real estate!
Passive Income Dude