Investors’ Expectations Of Reasonable Returns May Have Broken From Reality

Investors’ Expectations Of Reasonable Returns May Have Broken From Reality
Andrew Rummer

over 2 years ago1 min

Individual investors’ expectations of the returns they’re likely to achieve keep growing and growing and have definitively broken from what financial professionals think is reasonable, according to a survey from French investment bank Natixis

Investors expect their money to grow by 13% above the rate of inflation in 2021, up from 8.9% in 2014, the survey of more than 8,000 people from 24 countries shows. Over the long term, they forecast even greater returns of 14.5% above inflation – nearly triple the 5.3% figure that financial professionals polled by Natixis say is realistic. 

This steady ratcheting up of expectations over the past few years – despite nothing fundamental changing about the mechanics of investing – suggests that many investors may be setting themselves up for disappointment. 

As Natixis puts it, “many may not be prepared to withstand the risk exposure they’ll have to assume in order to live up to expectations.”



All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG