of Andrew Graham, managing partner, Jackson Square Capital, is with me to talk about the market action as we sort of wrap up this year. How are you feeling about the market right now. >> Well, I I feel like we've gone through another, you know, pullback in the momentum factor.You see that in the tech tape up until, you know, yesterday's solid solid micron report. Um, and there's follow through today. Um, I think it's kind of chopped.I guess what I'll give you a ba hug. How about that. this time of the year. ...

Summary of Deutsche Bank Research Institute Report on Long-Term Investing Industry Overview - The report focuses on long-term investing strategies and asset class performance across various macroeconomic environments, drawing on data from 56 economies over more than 200 years [2][6][11]. Key Findings Historical Performance of Asset Classes - Median global inflation-adjusted returns in USD terms show: - Equities: 4.9% p.a. - 60/40 Portfolio: 4.2% - Government Bonds: 2.6% - Bills: 1.9% - Gold: 0.4% - Cash: -2.0% [6][14]. - Gold has underperformed compared to financial assets historically, but in the 21st century, it has outperformed with a return of 7.45% p.a. [6][16]. - The best-performing equity markets over the last century were in Sweden (7.5% p.a.) and the US (7.2% p.a.), while Italy had the worst performance for equities (2.5% p.a.) and bonds (-1.1%) [6][19]. Economic Growth and Returns - Nominal GDP growth is a key driver of asset-class returns, averaging 5.7% annually since 1900 [6][19]. - Developed markets (DM) have seen a decline in nominal GDP growth, with projections of around 4% over the next five years, which is below historical averages [6][32]. - Real GDP growth in developed markets is at its lowest level in a century, reinforcing the link between economic growth and investment returns [6][41]. Investment Risks and Probabilities - The probability of equities underperforming cash over 25 years is only 0.8%, but this rises to 6.3% over 10 years and 13.6% over five years [10]. - For government bonds, the probability of underperforming inflation is around 25% across various time frames [10]. - A 60/40 portfolio has historically offered the lowest probability of nominal losses, with just a 0.1% chance of negative returns over 25 years [10]. Demographic Trends - Both developed and emerging markets are experiencing slow population growth, with 32 economies projected to see a decline in their working-age population by 2050 [9][54]. - Countries with declining working-age populations may struggle to sustain real GDP growth, impacting future investment returns [59][60]. Inflation and Returns - Historical data indicates that equities serve as an effective hedge against inflation, with nominal equity returns rising with inflation [50]. - However, real returns tend to decline slightly as inflation increases, suggesting that equities perform best in lower-inflation environments [50][52]. Currency Depreciation - Over the past century, only three economies (Switzerland, Singapore, and the Netherlands) have seen their currencies appreciate against the US dollar, while many have depreciated significantly [91][93]. - The US has been a significant relative winner in currency terms, influencing returns when measured in USD [97]. Additional Insights - The report emphasizes the importance of starting valuations in predicting long-term performance, with low P/E portfolios outperforming high P/E portfolios historically [9][81]. - The relationship between equities and bonds has reverted to a positive correlation post-COVID, suggesting that both asset classes may move in tandem more often in the future [83][87]. This comprehensive analysis provides valuable insights for investors looking to navigate long-term investment strategies in a changing economic landscape.