Investors should not expect profits above 1.2% per annum on the segment nearest decade because stocks are too expensive, and the pace of corporate profit growth are too small - so says John Hussman, president of the Investment Trust, Hussman - on AMarkets materials.
Market too long ruled the speculative point - shares skyrocketed. Soon, the economic situation will change - the Fed, in the end, raise rates. In this environment, the shares will not stay on top. Equity Yield closer to a level that makes the market Treasuries. Last week the S & P500 broke a new record, which is 3% nedotyanul to an absolute record in July 2015.
Hassman forecast is based on a comparative assessment of the market capitalization of the stock exchange with the indicator "GDP plus" (also includes foreign income earned by US companies). The expert believes - the stock market, which will generate 1.2% of the profits will not be able to avoid the correction period, which amount to 10% or more. To S & P 500 over a year could earn 8% or more, the stock market, according to estimates of experts, it is necessary to fall to 40-55%.