Fund Manager Warns of Up to 15 Years of Near-Zero Stock Returns Amid High Inflation and Rates
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Stocks could see near-zero returns for the next 10-15 years due to high inflation and interest rates, says fund manager Bill Smead.
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Losses could be on par with the dot-com bust and 2008 financial crisis, with the S&P 500 index dropping significantly.
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Stubbornly high inflation raises the risk of the Fed keeping interest rates higher for longer.
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Overvalued areas of the market like AI and tech stocks could plunge 70% says Smead.
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"Dead ball" period will end once enthusiasm for expensive stocks dies down, but "out of favor" assets like oil, real estate and gold can still make money.