A decade going nowhere in stocks. Actually 16 years 1966 to 1982, reading closer it only broke out in 1982 so you were down on 1966 in 1982 but onwards and upwards since then.
If it is shaping up as long term and less transitory inflation, I wonder how many people nearing 65 are in equities. Bummer to hit retirement just as your portfolio craps out for the next 10 years.
It could increase the size of an overreaction if people nearing retirement in passive index funds get spooked as it will feed on itself as selling pushes prices lower encouraging further selling. A bit like a bank run or the end of a ponzi scheme.
Also I was going to add margin debt as a potential issue, but that is already coming down although if Fig 1 in the article below is to be believed still pretty high historically. it has come down to the peaks reached in 2000 and 2008. Leverage does wonders when asset prices go up, and no one believes asset prices can ever go down, so why not.
https://www.currentmarketvaluation.c...argin-debt.php
Janet Yellen reckons we will never see another financial crisis in our lifetimes so I guess we should not worry too much. Ex fed chair and current secretary of the treasury, she knows a lot.
She is also 76yrs old so maybe she has some health problems we don't know about. "Lifetime" is relative.
https://www.usnews.com/news/articles...-our-lifetimes
And in keeping with the thread.
It is time in the market not timing the market.
Asset prices always go up in the long term.