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The likely scenario for our economy in the next several years, and so for the stock market as a crude proxy for it, would appear, to judge by the majority mood, to be one of three negative outlooks: bad, worse, or worst.
At best, folks think we shall have a deep and prolonged recession. However, it is generally believed it would not take much more to tip us into a mild depression, one such as the Japanese experienced in the 1990s and what people are calling "a lost decade," in which little or no net growth occurs, there is high unemployment, and stock or home prices remain low.
Then there are those that think "the other shoe" has yet to drop, but that when it does, maybe due to further precipitous declines in housing, a cascade effect that decimates many of our remaining financial institutions, a major new terrorist attack, etc., nothing government does will prevent a global Great Depression type debacle, from which it may take a generation or more for us to crawl out.
I know that, historically, when the market has been down as much as it was last year, it usually surges back in the following year or two. However, even if that occurs this time, there is no guarantee the gains will not be erased soon thereafter by fresh downward volatility.
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