Biggs: My view is that we’re at the very tag end of a super bull market. That means the prudent person who’s thinking ahead toward retirement should assume that over the next five to ten years the total return from his equity portfolio is going to be in the 5 %- to 6%-a-year range.
Fortune: NOT THE 15% TO 20% WE’VE COME TO LOVE AND EXPECT?
Biggs: Right. It’s very late in the game.
Farrell: Trouble is, it’s looked that way for a long time.
Biggs: Yes, but it’s never looked as much that way as it does right now
We will come back to the “late-in-the-game issue” a little later. For now, consider regression to the mean