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Because of our 2% interest rate, the continued hawkishness of Europe, and China's collapse of the bubble, the US stock market as well as select emerging markets (Brazil and Russia) look like strong economies for the next 12-18 months. Beyond that, I think the US market will be the strongest economy to be involved with. This bear market is becoming very similar to the 1967 to 1981 bear market and that leaves the possibility for large growth.
The potential for growth reduces with the lessening of population growth and minimal inflation. However, stock market returns should continue to produce at 2-4% above the market as people still place a risk premium on equities as it is 15-25% below market and a really good deal right now.
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