5 Investment Strategies for a Low-return Environment

Bond-yields remain low, and developed equity markets risk plateauing after a considerable bull run. So how can investors eke out returns in a low-return environment?

Christine Benz 27 July, 2015 | 12:56PM
Facebook Twitter LinkedIn

For the past several years, sombre market watchers have been warning investors to prepare for more modest returns from their portfolios. Just as trees don't grow to the sky, nor do extended market rallies go on forever. 

Market fundamentals also suggest that more muted returns are likely in the future. Bond yields have historically been a good predictor of total returns from bonds over the ensuing decade; today's Barclays U.S. Aggregate Bond Index yield of about 2.25% suggests that investors should check their return expectations for that asset class. 

And while stocks could well continue to benefit from being the best of a bad bunch, valuations could put a lid on stocks' gains.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

About Author

Christine Benz

Christine Benz  is director of personal finance at Morningstar and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances.