Prepare for Change: Market Correction Ahead and the Return of Market Timing Strategies
Investors should brace for a potential market correction that could significantly alter the investment landscape. Evidence indicates the average annual return from stocks over the next decade will be unusually low. This grim outlook suggests that many investors might pivot from the traditional buy-and-hold approach to market timing strategies. Graphs reveal a strong relationship between the Shiller CAPE PE ratio and ten-year market returns. Currently, the ratio sits at 38, signaling a likely near-zero price gain in the S&P by 2035. Investors should assess their strategies and prepare for changing tides in the market.