Required Equity Returns

The downloadable Required Equity Returns document is a simple, yet useful way to quickly understand the impact low bond returns can have on the overall portfolio and why it might be necessary to use investments other than stocks and bonds.

Key Takeways

  • This tool shows you what the required return for equities would need to be to achieve a specific return for a traditional equity and bond portfolio.
  • Unless you anticipate consistent double digit returns from equities, it will be difficult to achieve the required returns.
  • Increasing equity exposure allows for potentially higher returns but introduces more downside risk.
  • Certain investments outside of stocks and bonds can help increase the viability of achieving required returns without taking on excess downside risk.
  • Source: Standpoint Asset Management, LLC

Important Disclosures

Standpoint Asset Management, LLC (Standpoint) does not endorse and is not responsible or liable for any content, advertising, products, services, or information on or available from third-party websites or materials. Standpoint may use content on this website that has been supplied by companies that are not affiliated with Standpoint (third-party data). Any third-party data contained on Standpoint’s website has been obtained from sources believed to be reliable, but the accuracy or completeness of the information cannot be guaranteed.