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Research Affiliates: Treasuries and cash beat S&P 500 due to high valuations

Research Affiliates, an investment firm managing $188 billion, suggests that current high valuations make U.S. large-cap stocks, particularly growth stocks dominated by the "Mag 7," a poor investment over the next decade. Their model projects meager returns of 3.2% for U.S. large caps and even less for large-cap growth, which trails inflation. In contrast, the firm's analysis indicates that U.S. Treasuries and even cash offer more attractive returns, with intermediate Treasuries projected to yield 4.6% annually. AI

IMPACT Investment outlooks are not directly related to AI operations or development.

RANK_REASON Article presents an opinion on investment strategy based on a proprietary model, rather than a new release or factual event.

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Research Affiliates: Treasuries and cash beat S&P 500 due to high valuations

COVERAGE [1]

  1. Fortune TIER_1 English(EN) · Shawn Tully ·

    With bond yields surging to 4.7%, T-notes are looking like a better deal than the pricey S&P, says the Research Affiliates’ formula

    Record stock prices, surging bond yields — Research Affiliates has surprising advice on where to invest for the next 10 years.