"You Get Nothing" - World's Largest Insurer Warns US Stocks Offer "No Returns" For The Next Decade

There will be "almost no prospective returns" from U.S. stocks over the next decade because the market is fully valued following years of gains, according to the global strategist at Allianz Global Investors, which manages $569 billion.

As Bloomberg reports, low interest rates and bond purchases by central banks have left cash and many other asset classes "significantly mispriced," Neil Dwane said Monday as part of a panel discussion on long-term investing at the Toronto Global Forum.

"The U.S. is fully valued," said Dwane, whose firm is owned by Munich-based insurance giant Allianz SE.

"There’s almost no prospective returns for the next 10 years from the U.S. equity market, and therefore investors have to look into Asia or Europe where valuations are significantly lower."

With interest rates close to zero around the world and bond markets "manipulated by central banks," it’s difficult to assess risk and return, he added.

Many investors have turned to high-yield bonds or emerging markets for income, which raises risks.

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