Investors must brace for lower returns, Tim Buckley at Vanguard has warned
The boss of $5 trillion fund behemoth Vanguard has warned that stock market returns will halve over the next decade as volatility surges and the era of cheap money ends.
Tim Buckley, the chief executive of the world’s second-largest asset manager, believes investors will face “muted returns” and more wild swings in stock prices after an extraordinary bull run.
Mr Buckley predicted that annual returns on global equities will plunge to between 4.5pc to 6.5pc over the next decade, half the 12.5pc yearly return of the MSCI World Index over the last 10 years.
“If you look out over the longer term, you should expect lower returns,” said Mr Buckley, a protégé of Jack Bogle, the late Vanguard founder…