According to respected GMO, your expected returns for the next 7 years is now negative 3% for stocks and negative 2% for bonds. So, if you buy US bonds for 2% yield, you can expect no return at all as prices will likely fall. Worse, you can expect negative price returns for equities AND the prospect of stomach churning declines of 30 to 50% along the way! It won't be a pleasant ride. At equity prices today, you're not being compensated sufficiently to endure such risk!
|GMO: Expected Asset Returns for Next 7 Years|