Invest And Speculate Revisited
By now, most our readers would agree that US stocks are extremely expensive based on many well known long term valuation metrics. Furthermore, it has also been widely pointed out that the future stock returns will be extremely low. John Hussman has argued for some time now that US stocks would virtually return nothing or even lose in the coming 12 years. A recent white paper The S&P 500, Just Say No by James Montier in GMO even predicts -3.9% annual loss in their 7-year forecast:
As always, the GMO white paper is full of good insights and we highly recommend it.
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