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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