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U.S. Investors Should Expect Investments to Lose 70% of Peak Values

That would be from the 2000 peak in real terms. The 2007 peaks were nominally higher, but actually lower, after inflation.

This could happen in one of two ways. The 1930s model involved nominal declines above 80%, which went back into the 70%s after the accompanying deflation.

The 1970s model involved inflation. Nominal stock values stayed flat for 18 years, during which time the subsequent inflation eroded the real value by more than 70%.

So expect a continued erosion of most of the gains of 1982-1999. Bill Gross of Pimco pointed about that the average annual  return on U.S. blue chips stocks was inflation, plus dividends, plus 0.6% real, in the 20th century.

The market goes up about four times (in real terms) over a good 18 year cycle, and then loses most of that back (almost 75%) in the bad 18 years.

The U.S. blue chip market is like a sine wave, not an upline. It basically hovers around 0 (or if you prefer, 0.6%) a year real. But values range from -1 to +1.