Bill Gross – August 2012 Investment Outlook: Cult Figures

The long-term history of inflation adjusted returns from stocks shows a persistent but recently fading 6.6% real return since 1912.

The legitimate question that market analysts, government forecasters and pension consultants should answer is how that return can be duplicated in the future.

Unfair though it may be, an investor should continue to expect an attempted inflationary solution in almost all developed economies over the next few years and even decades.