The US stock market has grown much faster than the US economy since the early 1980s. The total value of US corporate equities is now 280% of US GDP, up from 50% in the early 1980s. A key reason for this is the decline in interest rates over the same period. While interest rates have risen since 2022, they still cannot fall as much in the future, and therefore cannot support stocks as much, as they have over the past forty years. Expect low future returns from stocks.
