Jack Bogle Predicts Low Returns for a Decade
The End of the Beginning?
While he projects continued bull markets for years to come, Adam Parker, Morgan Stanley’s US Equity analyst is quoted by BusinessInsider.com as writing:
“While a high percentage of companies were able to show year-over-year margin expansion this year, the combination of muted revenue and negative factors in industrials, energy, and materials, and less benefits from lower oil in terms of consumer spend and lower input costs, have caused us to reduce our 2015 EPS outlook from $124 to $120.5,” the analysts added. “We also lower our 2016 EPS from $128.5 to $125.9 and set 2017 EPS at $131.4.”
All of this is in the context of Morgan Stanley’s 2016 macro house view, which assumes the Fed slowly raises its benchmark rate to from 0.125% to 1.125%, 3.3% global GDP growth, and 1.9% US GDP growth.
