“BofA warns of 0% returns over the next 10 years — but here’s the 1 key strategy to fight it”
October 20, 2021
“Are stocks setting up for another decade of monstrous returns? Bank of America doesn’t think so. In fact, the banking giant’s valuation model is forecasting a flat return for the stock market over the next decade. Depressing, right? But here’s the good news.
Bank of America U.S. equity and quant strategist Savita Subramanian highlighted one specific approach that could be critical to investors over the next 10 years: reinvesting dividends. In a recent note to investors, she said that the simple act of reinvesting dividends could yield a total return “equivalent to the S&P 500 at 6,000,” assuming payout growth stays near its long-term average…”
https://finance.yahoo.com/news/bofa-warns-0-returns-over-202000458.html
So they’re saying dividends are the next big play. When it comes to money there is no such thing as status quo. You’re either making money or you’re losing. So really BofA is telling us stocks will lose value over the next ten years in their opinion. If true this means dividends will pay out lower as well.
If stocks become complete garbage ownership of physical assets becomes more essential. At that point you want to own stock just so you own a piece of a company. Land, food, metal, so on and so fourth, all these things will be where people invest in my opinion.