ICangles Investment Post
The future for U.S. stocks over the next decade appears worrisome, regardless of the impact of the Corona Virus. Why? Because valuations matter. And stocks at the end of February were priced for perfection. Any significant negative development was poised to drive them lower.
The COVID-19 Virus that shutdown the U.S. economy has certainly qualified as a significant negative development. From that February peak, the U.S. stock market as measured by the S&P 500 has already lost about a quarter of its value. But even if stocks had continued to climb in the near-term, without the virus emerging, the decade plus outlook was still poor.