Alphameister

A Sideways Market For the Next Decade?

Good post and good comments. Hussman is right about profit margins reverting toward the mean. It will happen in any event but faster if the Democrats take the Presidency. While sector rotation can be helpful, as DaveW suggests, I'm convinced that the search for energy, both carbon-based and renewable (solar especially), will yield a secular bull market in those sectors extending far into the future. I expect the American consumer to be stressed for many years and will be avoiding investments in those sectors. The other enduring bull-market theme I see is provided by emerging markets where superior growth is likely to persist. A continuing search for productivity gains and extensive exposure to international markets will produce many winners among tech stocks also.