Some experts still offer evidence that stocks will remain a good long-term investments. Other observers have added to this optimism.
Studies do show that whenever stocks are off very much from their highs, future returns are usually better. That doesn't guarantee short term performance, but improvement can be expected over time.
However, this longer view can be suspect under present economic conditions.
The role of inflation due to our tremendous budget deficits, plus higher and higher taxes, and the crowding out of private capital investment, can easily hamper securities market projections.
Further securities market advances will depend on corporate earnings growth. They will be problematical with government spending and borrowing that will usurp the private supply of needed capital. ( See the Earl J Weinreb NewsHole® comments.)
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