Returns to equity

Before we know it we'll be back to 19th century style estimations where :

A new paper by Soosung Hwang of Cass Business School in London finds that the big equity performance premium is only a 20th century phenomenon. He calculates that, between 1830 and 1900, shares outperformed bonds by just 0.8 percentage points. Indeed, shares moved sideways for 40 years, between 1830 and 1870. This would suggest that bad long-run returns are more likely than widely thought. Investors, therefore, should reduce expectations for long-term returns because the past few decades have been more unusual on the upside, and hence less likely to recur.

Via Scotsman