If shares stall or fall and investment-grade bonds slump, some investors, accustomed to hefty returns, will be tempted to reach for profits by moving into riskier assets: speculative stocks, junk bonds and derivative securities (that they and their financial advisors don’t always understand). Big mistake, warns David Kotok, the chairman of Cumberland Advisors, an investment firm headquartered in Sarasota, and a frequent commentator on CNBC. “Expectations have been built to unsustainable levels by a decade of stimulus by central banks,” he warns. “I tell clients to now expect yearly returns in the low single digits—4 percent, 5 percent, 6 percent, maybe—not double digits. They don’t like to hear that..."

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