Annualised Long Term Real Returns

I refer to a previous post on the blog “Looking Ahead at Markets and Inflation“ which gives Coronation Asset Managers’ perspective on the returns of financial markets going forward.  This is another interesting graph which gives the long term averages.  You will see that these are lower than the returns for the various asset classes over the past 10 years, 5 years and 1 year.  Markets tend to revert to their long term averages.  This graph therefore supports their view that going forward, returns will be more muted.