DYI: IMO – as chief cook and bottle washer for this blog – this stock market powered by a debt bubble so huge when it pops returns could very well be in the range of the aftermath of 1929! Total return from that era lasting from 1929 to 1949 inflation corrected total return (dividends reinvested) was 0.2%! (See chart below).
Boomer’s and early Generational X’ers (early retired) maintaining a 100% stock portfolio – if I’m correct – will experience a massive decline in standard of living as stocks after this bubble bursts will continue their massive underperformance!
Individuals and families just starting out who have been investing since 2018 in an all stock portfolio is buying into a massive overvalued market. Returns going forward will be either sub par (returns below inflation) or outright negative over a very possible 2 decade long roller coaster type decline. (See chart above).
If this comes to pass Boomer's, Gen X'es, Millennial's, even a portion of Gen Z's will end up having a total disdain for common stock buying seen as nothing less than a gambler's fate! Setting up the stock market at that time with massive undervalued bargains galore for the next generations yet to be named who will end up with superior returns going forward!
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
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