Lower Equity Returns The New Norm? Think Again.Submitted by Legacy Financial Group on April 14th, 2012
David Booth of Dimensional Fund Advisors does a great job of explaining market cycles. There is no evidence that current investor sentiment has predictive power for future returns. A case can actually be made that investors are usually wrong and we should expect higher than expected returns in the years to come. Either way a properly diversified portfolio will still be the best way to reach your long term goal.