The broad S&P 500 is up 18.7% so far this year, but investors shouldn't count on this type of return every year.

Fredrik Axsater, EVP & Head of Strategic Segments, Wells Fargo Asset Management, expects a long-term return of 7% annually from the S&P 500.

However, a new Wells Fargo (WFC) survey, released Tuesday, showed that 72% of respondents feel optimistic about their investment goals over the next five years. Given the recent record rally in stocks, some investors may be disappointed as more muted stock returns come back into play. 

Axater sees opportunities in overseas stocks, whose economies aren't as far along in their recoveries as the U.S. is.

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