The stock market has done incredibly well despite covid. However, even with the amazing recovery from covid the blockchain ecosystem still outpaced the stock market. In the future, the difference will be even more dramatic. Here’s why.
Bank of America (and others) believe that with normal equities so expensive, overall returns will be completely flat over 10 years. I can’t tell if that’s too pessimistic or not pessimistic enough, but there are a few factors that will hurt potential returns from the stock market.
Baby boomers are retiring
As the baby boomers retire, they will fund that retirement by selling their stock holdings. But the only reason you buy stock is because you think that stock will appreciate in the future. As sellers hit the market and inflation eats real returns, they may quickly run out of buyers at anything like these price levels. And there are a LOT of boomer sellers. Lots of boomer sellers plus relatively few buyers = lower prices.
