The brief’s key findings are:
- Many forecasters contend that the sluggish economic recovery will limit stock returns over the coming decade.
- Despite the sluggish recovery, corporate earnings have recovered to nearly match their peak value.
- Higher earnings can be used to boost returns in several ways: buying back stock, retiring debt, buying stock in other companies, or paying dividends.
- The bottom line is that, over the coming decade, stock returns are likely to compare favorably to historical averages.