> The US equity market will unlikely to deliver exceptional returns.
With each passing day in this crisis, I think you can make the opposite case. Long-term risk in equities is going down, not up, as the market falls and stocks move toward relatively underpriced from relatively overpriced. Or am I missing something?
The expected long-term return from investing $1 in the stock market now vs beginning of Feb is higher, is it not?
The expected long-term return may still be lower than the historic average. However stocks are now significantly cheaper than now than they were in the beginning of Feb so it follows that yes, the expected long-term return from investing $1 is higher than it was in Feb.
With each passing day in this crisis, I think you can make the opposite case. Long-term risk in equities is going down, not up, as the market falls and stocks move toward relatively underpriced from relatively overpriced. Or am I missing something?
The expected long-term return from investing $1 in the stock market now vs beginning of Feb is higher, is it not?