Question: 1) The average return for large-cap stocks have been around 9 or 10 percent. This is in a period where GDP growth has averaged 3

1) The average return for large-cap stocks have been around 9 or 10 percent. This is in a period where GDP growth has averaged 3 percent. How is this possible that stocks can produce a multiple of GDP growth?

2) If the "new normal" for GDP growth is 2% (or less) what would be your long-term average of future stock returns? Why?

More interested in the answer to #2. Thanks.

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