It was probably both. Surely there is always a little optimism (our active fund manager can get us 8% instead of 7%!). But also- For the period 1950 to 2009, i

It was probably both. Surely there is always a little optimism (our active fund manager can get us 8% instead of 7%!). But also- For the period 1950 to 2009, if you adjust the S&P 500 for inflation and account for dividends, the average annual return comes out to exactly 7.0% But, now economists are speculating that was an exceptional period (the post-war period) and "normal" return is probably more like 4-5%.