Bye-Bye Big Returns, Investors Should Lower Their Expectations

When it comes to investing, it looks like the party is over. A study by McKinsey Global Institute, or MGI, finds that investors should expect diminished returns over the next two decades, as the golden era of investing ends. MGI says returns on both equities and fixed income investments in the United States and Europe over the next twenty years could be considerably lower than they have been in the past. 'When we put the two together in a typical portfolio, it will yield somewhere like two to four percent less than the last thirty years,' said Richard Dobbs, a director at MGI and one of the study's authors. TheStreet's Rhonda Schaffler has details from Wall Street.