The current yield on government-backed bonds is still very low, and the 10-year Treasury note is currently hovering at around 1.6%, forecasted to drop even lower next year. What does this mean? It’s a signal to the market about investor confidence. Bond prices and yields are inversely related – as investors flee to safety and demand for bonds grows, yields shrink. When bonds become a slightly more attractive investment, stocks become less appealing.

That doesn’t mean stocks will stop rising, though it does indicate slower gains. Historical stock market returns are 8% to 9%, not the 20%-30% we’ve seen the past few years. The same is true of real estate, too. It doesn’t mean stop investing in it, especially since it can offer a more stable, less volatile alternative, but don’t expect 20% returns.