The volatility seen in equity markets in the second half of 2018 will likely accelerate into next year, as projections of slower growth come to fruition, according to Vanguard. (Photo: Shutterstock)
Retirement investors can expect continued market volatility and slower growth in 2019, but not a recession, according to Vanguard's annual economic and market outlook report.
But boomers and Gen Xers playing the catch-up game with their retirement portfolios will see stingier returns over the next decade, particularly in equities.
Lower returns on global equities, U.S. GDP to slow to 2%
Vanguard is projecting annual returns on global equities will average 4.5 percent to 6.5 percent for the 10-year period, compared to the 12.6 percent of annual gains in equities experienced since the financial crisis.
Vanguard, which managed $3.46 trillion in assets at the end of 2017, including $381.5 billion in target-date fund assets, sees the global economy growing for the next two years, albeit at a slower rate.
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Nick Thornton
Nick Thornton is a financial writer covering retirement and health care issues for BenefitsPRO and ALM Media. He greatly enjoys learning from the vast minds in the legal, academic, advisory and money management communities when covering the retirement space. He's also written on international marketing trends, financial institution risk management, defense and energy issues, the restaurant industry in New York City, surfing, cigars, rum, travel, and fishing. When not writing, he's pushing into some land or water.
