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Vanguard’s 10y median forecast for US stocks is 3.9% annually, .6% for large cap growth

Posted on 3/10/25 at 9:15 pm
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 9:15 pm


This was the 12/31/24 expectations, so before markets turned south for the year in the last week. I hadn’t seen it mentioned though. A lot of unloved areas significantly outperforming large cap stocks and growth stocks in particular. Hell, cash is expected to outperform growth stocks.



LINK

Hope some of you are a lot more diversified than VUG if this materializes.
Posted by fallguy_1978
Best States #50
Member since Feb 2018
51453 posts
Posted on 3/10/25 at 9:18 pm to
This would wreck me for retirement.
Posted by el Gaucho
He/They
Member since Dec 2010
56728 posts
Posted on 3/10/25 at 9:21 pm to
Slackster if you can not whine to the mods this time about ancient tiger we might get a white boy summer again before they impeach Trump and prez aoc sends us to the fema camp
Posted by Boomer Rick
Member since Apr 2021
245 posts
Posted on 3/10/25 at 9:33 pm to
Domestic small caps have become garbage. More quality companies stay private and when they actually do go public they are large caps.

If small caps outperform, then it’s because we are melting up.
Posted by CharlesUFarley
Daphne, AL
Member since Jan 2022
722 posts
Posted on 3/10/25 at 9:38 pm to
Do you have any of their projections from ten years ago?

One thing to keep in mind is that the companies in the US stock market will seek profits. They will do that by getting into new markets, acquiring new business units, expanding into foreign markets, or investing in new technologies, or some other method.

No CEO not named Immelt is going to survive as CEO for a decade while producing only 0.6% price appreciation.
Posted by Rize
Spring Texas
Member since Sep 2011
17316 posts
Posted on 3/10/25 at 9:45 pm to
quote:

This would wreck me for retirement.


It would add years to mine. A lot of mine depends on my
PE investment. It’s probably about 40% of my investments now.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 9:46 pm to
quote:

This would wreck me for retirement.


That’s on buy and hold projections. DCA and other strategies can perform better with a little luck.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 9:47 pm to
quote:

No CEO not named Immelt is going to survive as CEO for a decade while producing only 0.6% price appreciation.


We lost an entire decade of returns from 2000-2009. It’s certainly not impossible.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 9:55 pm to
quote:

Slackster if you can not whine to the mods this time about ancient tiger


Too late.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 9:56 pm to
quote:

Do you have any of their projections from ten years ago?


Not easily. I’ll see if I can find more. There were around 6% median coming into 2023 so it makes sense the back to back 20% returns would lower their expectations going forward.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38378 posts
Posted on 3/10/25 at 9:57 pm to
quote:

Do you have any of their projections from ten years ago?



They projected about 6% annualized for the 10 years going forward in September of 2014.


Actual was 11.1%
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38378 posts
Posted on 3/10/25 at 10:00 pm to
Btw the biggest bear signal came at the beginning of the year when poster I Love Bama predicted that we'd see 15% annualized returns (on the low end) the next 4-5 years.


That dude was a massive bear through a 3 year period that saw a cumulative 57% percent gain in the S&P500.

When he flipped to bull that was a good signal.
This post was edited on 3/10/25 at 10:01 pm
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 10:02 pm to
quote:

Actual was 11.1%


No clue what their percentile ranges were.

Like it or not, it’s quite unrealistic to expect 7% annualized returns when you’re coming into things at 21x forward earnings on S&P 500.
Posted by JohnnyKilroy
Cajun Navy Vice Admiral
Member since Oct 2012
38378 posts
Posted on 3/10/25 at 10:07 pm to
75th was right around 11%

Page 26
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/10/25 at 10:09 pm to
Thanks for finding it.
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11614 posts
Posted on 3/10/25 at 10:15 pm to
Not if the share of passive keeps growing which it should and credit spreads are tight with relatively low interest rates
Posted by Big Scrub TX
Member since Dec 2013
36803 posts
Posted on 3/10/25 at 11:51 pm to
quote:

Vanguard’s 10y median forecast for US stocks is 3.9% annually, .6% for large cap growth
It makes sense. It's hard to envision bull markets STARTING at a 25 P/E.

I like to average these with GMO's also.
Posted by CharlesUFarley
Daphne, AL
Member since Jan 2022
722 posts
Posted on 3/11/25 at 1:10 am to
quote:

We lost an entire decade of returns from 2000-2009. It’s certainly not impossible.


I think the lost decade refers to the S&P 500.

I was more into value, international, and small cap. It wasn't lost for me, though 2009 looked pretty dark for a while.
Posted by slackster
Houston
Member since Mar 2009
89380 posts
Posted on 3/11/25 at 5:38 am to
quote:

Not if the share of passive keeps growing which it should and credit spreads are tight with relatively low interest rates


You’d think Vanguard of all places would understand the growth of passive investing, but I understand your point.
Posted by makersmark1
earth
Member since Oct 2011
18434 posts
Posted on 3/11/25 at 5:56 am to
Does that include dividends?
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