No. of Recommendations: 1
Manlobbi,
When I first read your post, the impression I got was one of overwhelming bearishness. Probably not what you intended.
My point is that lower returns going forward does not mean stocks are overvalued. That lower returns are what we should rationally expect. So I agree with your 2nd post.
Grantham, Hussman, et all use the 6.5% real return as some sort of divine right that god bestowed upon investors and if expected returns are lower than that, stocks must be overvalued. I think that sort of thinking caused as much damage to investors as any of the ponzi/crypto/meme stock craziness.
Thank you!
