JP Morgan to long-term investor: stock markets return to 30-year trend line
According to JP Morgan, taking the last 30 years, it appears evident that the S&P500 has an average annual return of 7.5%, which makes sense considering an average annual inflation of 3.5% coupled with an average GDP increase of 3% (as an average of the cycles), plus a modest risk premium added. “The greatest deviations in the last 30 years from this trend occurred during the tech bubble and the credit…