Serious question: across all the stock markets that have ever existed, across all the countries that have ever had stock markets -- _including countries & stock markets that no longer exist_ -- what's the true average rate of return? There must be econ papers on this
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Yes, that's the best paper around, I confirm. Catastrophic declines of countries (China/Russia) only shave about 0.1% of average annual return for a global portfolio.
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Real returns: ~5% stocks ~2% bonds ~0-0.5% cash is a good estimate.
End of conversation
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The same trio wrote the book "Triumph of the Optimists", which concludes that the average real return on stocks is about 7%.pic.twitter.com/GvOwnYNaxN
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