Every generation has perceived the limits to growth that finite resources and undesirable side effects would pose if no new recipes or ideas were discovered. And every generation has underestimated the potential for finding new recipes and ideas. We consistently fail to grasp how many ideas remain to be discovered. The difficulty is the same one we have with compounding: possibilities do not merely add up; they multiply.<\/p><\/blockquote>\n
Despite the possibilities for economic growth through accelerating technological change, I nevertheless believe that the arguments forecasting a lower equity risk premium and lower total return are compelling. \u00a0It may turn out that the pessimistic estimates are wrong, but, if so, an overly cautious investor who invests a large percentage of income to save for retirement will still be rewarded with an earlier or more comfortable retirement.<\/p>\n","protected":false},"excerpt":{"rendered":"
Recommended Reading I never completed my previously promised series on the equity risk premium, but for\u00a0readers who are interested in the topic I would highly recommend the recently released\u00a0“Rethinking the Equity Risk Premium” from the CFA Institute. This free PDF contains a\u00a0variety of interesting perspectives on the future of the equity risk\u00a0premium. Note that a […]<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/posts\/3780"}],"collection":[{"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/comments?post=3780"}],"version-history":[{"count":97,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/posts\/3780\/revisions"}],"predecessor-version":[{"id":3880,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/posts\/3780\/revisions\/3880"}],"wp:attachment":[{"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/media?parent=3780"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/categories?post=3780"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.calculatinginvestor.com\/wp-json\/wp\/v2\/tags?post=3780"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}