Perhaps most important, I doubt that we will enjoy a repeat of the double-digit returns of the past 16 years over the next 16 years. One key reason is the Internet. Yes, the Internet is a revolutionary technology transforming the way we live and work. It is a force for strong economic growth and higher living standards. But the Internet has also unleashed intense, perhaps deflationary, price competition throughout the economy.
Consumers are the clear beneficiaries.
But strong corporate profit growth will be tough to come by in an environment where companies have no pricing power, and stock returns will likely run in single-digit territory.