Your English writing platform
Discover LudwigSuggestions(5)
Exact(6)
Average annual returns on equities certainly grow less volatile, but the opposite is true for total returns as holding periods lengthen.
First, it has a low correlation with returns on equities and bonds, so holding some of it along with other investments reduces overall risk.
True, higher interest rates on cash and bonds mean that any given amount of growth in companies' earnings, which drive returns on equities, begins to look slightly less attractive.
A recent analysis shows that, when American price-earnings ratios are low, returns on equities over the next decade average 8%; when they are high, returns average 3%.But people's recent losses have made them cautious.
Asked on the tape whether long-term stock investments would be safe, Mr. Gore replies: "Over any 10-year period in American history returns on equities are just significantly higher than these other returns.
After adjusting for inflation, equities had average real returns of around 7% a year, compared with only 1% for Treasury bonds a 6% equity premium (see chart 1).A small premium seemed justified, since returns on equities had bounced around more than those on bonds that is, stocks were riskier.
Similar(54)
Look for high return-on-equity.
Returns on equity have topped 20%.
Returns on equity have fallen.
Some banks' returns on equity are believed to be shrinking.
Returns on equity are healthily in the mid-teens.
More suggestions(2)
Write better and faster with AI suggestions while staying true to your unique style.
Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com