If you’re an investor in desperate need of double-digit returns, then Morgan Stanley has some disappointing news for you. Since bottoming in early 2009, the S&P 500 SPX, +0.07 on average has posted double-digit returns. The benchmark index, which largely represents the U.S. stock market, is trading at record levels and by almost every valuation metric is considered richly valued. Such high valuations, however, are usually associated with low or sometimes negative long-term returns. Meanwhile, concerted efforts by global central banks following the financial crisis have pushed interest rates around the world to historic lows. “A traditional 60%/40% equity/bond portfolio in U.S. dollars will see 4.2% per annum over the next decade, while the same in euros fares only slightly better at 4.7%, and British pounds at 4.9%,” analysts at Morgan Stanley wrote. If you are a Japanese investor, however, a 60/40 portfolio in yen terms sees above-average expected returns, driven by elevated equity risk premiums, according to Morgan Stanley. via