By Mike Eklund via Iris.xyz
Where should you invest now? As I wrote last year in “Should I Own International Stocks?”, in investing it is important to “skate where the puck is going, not where it has been” (Wayne Gretzky). What this means is don’t use historical results to predict future returns.
The last 10 years have been very good to US stock investors as we explain further in “Why Have US Stocks Performed So Well”. It is easy to be complacent and assume you can expect the same results for the next 10 years.
Noted below in Exhibit 1 is historical returns for various indexes over the last one, five and ten years, respectively.
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