We have a new meaning of “volatile” today courtesy of Vanguard. Expect only 3-5% gains in 2018.

Here’s a good one: Vanguard Warns More Volatility in 2018 May Hurt Equity Returns but expect positive returns anyway.

Vanguard Group, which manages $4.8 trillion, wants investors to take note: 2018 may not be great for your portfolio.

“While our global market outlook suggests a somewhat more challenging and volatile environment ahead, investors can continue to find potential for long-term success by lowering their return expectations,” Joseph Davis, Vanguard’s global chief economist, said in a press release.

The firm sees U.S. stock returns of 3 percent to 5 percent and 5.5 percent to 7.5 percent for non-U.S. equity markets.

Mercy! What a Catastrophic Prediction

I am curious. Does anyone know if Vanguard has ever predicted a decline?

Volatility Refresher Course

It seems that Vanguard has forgotten what volatility really looks like. I am glad to be of service.

For further discussion, please consider:

  • Generational Chance to Sell Equities?
  • VIX Elephant Poised to Lose $20 Million Escapes With $2 Million Loss