We Asked Rich Bernstein Why the S&P 500 Could Deliver a Lost Decade — And What He Owns Instead

Summary

Investing in S&P index funds for the long term might lead to disappointment, as we're currently importing inflation, meaning import prices are rising faster than domestic prices, impacting everyday essentials like groceries and gasoline. This situation is more akin to the "guns and butter" spending of the 1960s, marked by a surge in defense and social spending alongside a tax cut, rather than the 1970s oil shocks, because today's oil prices represent a much smaller portion of wages. Despite the ongoing global conflicts and deglobalization trends, opportunities exist in areas like small and midcap industrial companies, non-US stocks, and pro-inflation assets, which investors are currently overlooking.