DYI Comments: Stocks are highly correlated to prosperity(economic growth) take that away(recession) and equity prices come tumbling down. Depending on the level of valuations will determine the possible drop in prices. Today with sky high valuations a drop of 45% to 60% would be a run of the mill decline. Valuations today are so high that the estimated return for stocks held or bought at this level and then maintained for the next 10 years is between negative 2% to positive 2% for an average of 0%. This of course is before fees, commissions, taxes, and inflation. At the best of conditions a 2% return when all costs are factored in will be a loss of purchasing power. So hang onto your cash as better values are ahead.
THE GREAT WAIT CONTINUES.....
DYI
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