, Columnist
Stop Fooling Yourself About 8% Easy Returns
Stock and bond markets are profoundly different from those in decades past.
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There's an amazing amount of denial going on right now.
Investors are simply ignoring current market dynamics and are still expecting average annual returns of 8.6 percent, according to a Legg Mason Inc. survey of income investors released this week. Those who were employed expected more than 9 percent gains, with retirees expecting less. Actual returns have come in markedly lower of late, but hopes remain high.