Rising risks amid muted returns
Consensus expectations have finally centered on a long-term outlook characterised by tepid growth and inflation, but there is risk that a cyclical rebound in economic fundamentals could cause a market repricing, ultimately mistaking ‘the trend for the cycle’.
The secular forces of globalisation, demographics, and technology have for years served as the foundation for Vanguard’s long-term outlook of modest growth and tepid inflation. For 2018, Vanguard anticipates more volatility and an uptick in inflation accompanied by more muted equity returns.
(Click on the cover page image for the full document).
Sponsor White Papers (click here to see all previous papers)
Wikipedia defines a White Paper as “an authoritative report or guide informing in a concise manner about a complex issue and presenting the issuing body’s philosophy on the matter. It is meant to help readers understand an issue, solve a problem, or make a decision.”