With that in mind, while we expect tepid real returns (after-inflation) for the broad equity market over the next few years, we believe that the opportunity for innovative smaller companies may be above-average.
By the end of 2008, broad equity prices had fallen close to 50%.
"The broad equity market is in holiday mode," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management.
The re-regulation of banks calls for a broader equity base and less leveraging of loans and investments.
As for broad domestic equities, they've taken investors on a very rough ride since the financial crisis of 2008 and early 2009.
The 2019 proxy season likely will bring additional examples of companies proposing formulaic director plans or programs within broader equity plans for stockholder approval.
Mark Hulbert, editor of the Hulbert Financial Digest, which tracks the performance of stock- and fund-picking newsletters, says that over the past decade Morningstar's five-star equity funds have earned an average 5.7% against a 10.3% return for the Wilshire 5000, the broadest equity index.
The pickup in public offerings is natural, given the strength of the broader equity markets.
Morgan has a broader equity business, but is not strong in technology.
Historically the average risk premium for the broad U.S. equity markets has been between 2% and 3%.
