Stock Market Roller Coaster: Prepare for a Decade or Two of Disappointing Returns

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This is an excerpt from Vitaliy’s Winter Client letter 2022.

I am very pessimistic about the returns from the average US stock over the next decade or two. If you owned index funds over the last decade, you were richly rewarded by the stock market.

It is time for the payback.

Investors who own index funds have likely strapped themselves into a giant roller coaster which, to this point, has only gone up. Over the next decade or two they will experience an exhilarating ride filled with mini bull and bear markets, but at the end of the journey they will not be far from where they started.

John Wiley & Sons, publisher of The Little Book of Sideways Markets approached me about re-releasing this book. With the benefit of hindsight, the thesis of the book is more relevant today than when it was published in 2010.