S&P 500 will return just 3% a year for the next decade, top strategist warns

Rob Arnott warns that shareholders in U.S. big caps will make one-fifth the returns over the next 10 years they pocketed since 2016, and those meager gains will barely edge the CPI. You may want to take a cold shower, or a shot of tequila, before you hear the convincing logic behind his dour prediction.

Arnott is the founder and chairman of Research Affiliates, a firm that oversees strategies for nearly $200 billion index funds and ETFs for the likes of Charles Schwab and Invesco. He...