Comments on: Expected Returns http://www.financialreference.com/blog/2006/03/26/expected-returns/ Musings of a Financial Hobbyist Tue, 06 Jan 2009 00:57:45 +0000 http://wordpress.org/?v=1.5.2 Comment on Expected Returns by: 1mill_by_35 http://www.financialreference.com/blog/2006/03/26/expected-returns/#comment-302 Sun, 26 Mar 2006 16:00:45 +0000 http://www.financialreference.com/blog/2006/03/26/expected-returns/#comment-302 financialreference, I agree with you 10% is aggressive. I've theorized 8-10%, so 10% at the high end. However, remeber GDP growth is generally consistent the revenue growth of the market. Since companies have both financial and operating leverage and earnings grow from a smaller base, you can get 10% earnings growth at lower GDP/revenue growth. financialreference,

I agree with you 10% is aggressive. I’ve theorized 8-10%, so 10% at the high end. However, remeber GDP growth is generally consistent the revenue growth of the market. Since companies have both financial and operating leverage and earnings grow from a smaller base, you can get 10% earnings growth at lower GDP/revenue growth.

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