For the past century, stocks have offered a return of 7.2% every year, the same amount as the average earnings yield today. An analysis of average business earnings and cash distributions show that people who invest in stocks are earning less profit yearly. Relying on stocks alone to save up for retirement will only allow for a compounded 2.5% of returns every year. For millennials, low yields mean they will likely be working much longer than their parents.
Real estate is still a popular investment pick. Here’s what you need to know about buying in a downturn | CNBC News
May 13, 2020