Stocks for the Long Term: Why Prospects Are Rosy

by Dale Domian and William Reichenstein

Stocks For The Long Term: Why Prospects Are Rosy Splash image

You already know the bad news: U.S. stocks as measured by the S&P 500 lost almost 50% from the October 2007 peak though November 18, 2008. Most foreign stock indexes were off by a little more than 50% this year.

The good news is that based on today’s depressed prices, long-term stock prospects appear above average.

In this article, we take a look at some of the evidence that supports a rosy multi-year stock outlook, and provide a framework for applying these forecasts.

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Dale Domian , Ph.D., CFA, CFP, is professor of finance at York University in Toronto, Canada. He can be contacted at
William Reichenstein , CFA, holds the Pat and Thomas R. Powers Chair in Investment Management at Baylor University and is head of research at Social Security Solutions, Inc .


Donald from Maryland posted over 3 years ago:

Will AAII be publishing the three indicators discussed in this article?

Joesph from Pennsylvania posted over 3 years ago:

I am a relatively new member to aaii. Still exploring and learning from the writings and all that the web site has to offer.

Same question as above. Will aaii be publishing the 3 indicators discussed in the article each quarter? Or, will aaii direct readers as to how we can review a summary of the selected tables/charts with the data offered?

Charles Rotblut from Illinois posted over 3 years ago:

These indicators are not included the datafeeds we receive. Robert Shiller maintains a website with his information at

The bond yields are available at many financial websites, such as Bloomberg.

I would check Value Line's website for its indicator.

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