Nathan Zahm, a senior investment strategist at Vanguard Group in Hong Kong, said that investors should be prepared for a decade of "low returns". He reiterated the view of fund management companies that manage $4.5 trillion, that is, the stock market return rate will drop to 5% to 8% per year, while the bond market return rate will drop to 2% to 3%.
He pointed out that this was still boosted by economic growth in Japan and Europe, and the world economy performed better than expected in 20 17.
The S&P 500 index of American stock market has risen by 12% this year, which is bound to be the biggest annual increase since 20 13, while only one of the 24 developed economy stock markets tracked by Bloomberg recorded a decline in the same period. Although stock market investors are not concerned about the political chaos in the United States and the rising risk of conflict in North Korea, they are concerned about economic output and corporate profits, but Pioneer believes that the good times will pass.
"This year's performance can be said to be an unexpected surprise," Zam, 34, said in an interview in Tokyo. "The economic growth rate is relatively stable, and the growth rate of some countries is still strong, and market conditions and interest rates are still good."
But he said, "We want to remind investors that the future returns look quite limited, especially in the current environment, we have achieved very strong performance." Vanguard has believed for decades that low-cost passive funds can bring better returns to investors in multiple market cycles compared with high-priced products.