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"It's just a separate piece of paper so it can have stronger equity return".
So what does the median venture capital or private equity return look like?
That comes to a real equity return of 5.4% (the calculation is geometric, not arithmetic).
Sure enough, the annual real equity return over the next ten years was just 0.8%.How low can you go It should have been no surprise.
Yet if you look at the ten years where Republicans had complete control, the average real equity return is still negative.The third caveat is that economic policy is also set by the Federal Reserve.
If repeated, it would raise the real equity return to just 3.3%.As for valuation, this contributed around 0.7% a year to global equity returns between 1900 to 2005.
Similar(41)
Over time, equity returns are higher than those for bonds.
Even if equity returns were disappointing, pensions still had to be paid.
Expectations of poor equity returns in future partly explain the switch.
IT MAY seem obvious that faster economic growth should translate into higher equity returns.
Studies have shown almost no correlation between GDP growth and equity returns.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com