Investors, Prepare to be Disappointed

Investor expectations are way out of whack with reality, according to the global survey of individuals. U.S. investors* expect 17.5% real returns over the long term. If these survey numbers are to be believed, investors are about to be very disappointed.

The S&P 500 has returned 10.4% over the long term. The idea that we’re going to get 17% real, after getting 17% nominal over the last 5 years, is nothing short of absurd.

I spoke about this nonsense on The Compound and Friends this week with Amelia Garland, Jeremy Schwartz, and Josh Brown.

*They polled 750 investors with at least $100,000 in investable assets