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Fri, January 24, 2025

Vanguard's U.S. stock-market call is even more shocking than you realize


Published on 2025-01-24 19:01:29 - MSN
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  • Do you and I even need to own U.S. stocks in our retirement portfolios? And if so, do we need to own the S&P 500
  • the benchmark index of large-company stocks that is the bedrock of almost every portfolio?

The article from MSN discusses Vanguard's surprising forecast regarding the U.S. stock market, highlighting a significant shift in expectations for investment returns. Vanguard has lowered its 10-year forecast for U.S. stock market returns to 4.2% to 6.2% annually, a notable decrease from previous estimates. This adjustment reflects concerns over high valuations, economic growth challenges, and potential market volatility. The article explains that this forecast is even more shocking when considering the historical context where stocks have often provided much higher returns. Vanguard's outlook suggests a more conservative investment approach, urging investors to recalibrate their expectations and possibly diversify their portfolios to mitigate risks associated with lower equity returns. This prediction comes at a time when many investors are still banking on the robust growth seen in recent years, making Vanguard's call a wake-up call for the investment community.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/savingandinvesting/vanguard-s-u-s-stock-market-call-is-even-more-shocking-than-you-realize/ar-AA1xOIAW ]
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