Tuesday, January 31, 2012

Long term expected returns

CBC News has reported the long term returns from the stock market should be between 4.75% and 5% over the next 15 to 20 years, in stark contrast to the typical 8% that is often predicted.  Click here for the article

It is really hard to predict where long term stock market returns will go.  There is a lot of debt in the USA markets now.  Gold is continually pusing new highs.  Long term mortgage rates are diving lower and lower (10 year ING mortgages at 3.99%).  Greece is flirting with default.

It is a difficult time to predict what is going happen longer term, especially with securities that are effected by the public's sentiment.  Equity mortgages are a viable option today for registered investments.  Having a secured product will protect your principle.

Remember the two rules of investing, according to Warren Buffett
Rule #1 - Never lose the principle
Rule #2 - Always follow rule number 1

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