Dodging a Lost Decade of Returns Is Easier Than You Think

Dodging a Lost Decade of Returns Is Easier Than You Think

If you only looked at stock prices over the past few days, you’d think the trade war was over and boom times are here again.

But as I’ll show you today, you don’t want to pop the cork on the champagne just yet – at least when it comes to the stock market…

On April 2, President Trump announced the most sweeping tariff regime in history. The S&P 500 and Nasdaq dropped as much as 16% and 18%, respectively, on the news.

Since then, the administration has softened its tariff policy. And the market has responded positively.

As of publication, the indexes have retraced much of their losses since the trade war started on April 2.

If you’ve been waiting on the sidelines, I know it’s tempting to jump back into the market at these levels.

And why wouldn’t it be?

Investors who bought every dip during this 16-year bull run have been richly rewarded. Over the past 10 years, the market is up 218% if you include reinvested dividends.

If history is any guide, then it would be a no-brainer to buy the dip again. But I believe buying stocks at these levels is incredibly risky.

That’s because we’re about to enter what Daily editor Teeka Tiwari calls a “Lost Decade of Wealth.”

During these “lost decades,” diminishing stock market returns lag the pace of inflation – or worse, turn negative. And if you aimlessly stroll into this investing wilderness… It could take decades for your portfolio to recover – if it ever does.

So now is the time to get defensive.

I want to be clear: We’re not saying the market will crash overnight.

In late 2006, Teeka co-authored a report called You’re Being Fattened Up for the Kill. In that report, he wrote about the real estate bubble and the threat it posed to the stock market.

Teeka was 100% correct in his assessment that a crash was coming. But that didn’t stop the S&P 500 from roaring to a new high in 2007. It ripped 10% higher before peaking at 1,565. Of course, over the next two years, it would go on to drop as much as 58%.

It's important to realize the same could happen in 2025-26. Just like in 2007, a final spurt of bullish action could lull investors into a false sense of security… before crashing back down.

That doesn’t mean you should sell everything and spend the next couple of years on the sidelines. Instead, you should start looking to buy assets that appreciate in value when most stocks go nowhere for years.

And that’s the beauty of investing. There’s always an opportunity to make life-changing gains somewhere in the market. You just have to know where to look.

Thriving Throughout Lost Decades