So while the economy probably has secularly stagnated the domestic equity market has not. Arguably the equity market has done what it has done before. It went down a lot and scared the hell out of people then it went on to make new highs. Yes the 2000s were a terrible decade (mostly) but that was not unprecedented either.
The secular stagnation theory resonates and seems likely to continue for a while, but the argument for a catastrophic outcome for markets ala Japan does not resonate (with me anyway); cutting in half and then making new highs within a few years is only catastrophic for the people who panicked out and never got back in.
If the idea of a catastrophic outcome for equities does resonate with you then you need to plan accordingly; short version, save more.
My preferred way to overcome this shouldn’t be is with some sort of disciplined strategy based on what markets are actually doing not what they should be doing because the reality is markets often do what they shouldn’t.
This article was written by AdvisorShares ETF Strategist Roger Nusbaum.