Wall Street is starting to worry about a 'lost decade' for US stocks

Market Outlook - A growing concern among Wall Street forecasters is the potential for the US stock market to be flat for the next decade, despite recent gains [1][6] - The S&P 500 is currently trading at a price-to-earnings ratio of around 27, significantly above the 5-year average range of 19.5-25.4, indicating high valuations [2] - Analysts are predicting a "lost decade" for stocks, where the US market may see near-zero returns or underperform compared to global markets [2][6] Performance Projections - Bank of America forecasts a slight decline of 0.1% for the S&P 500 over the next decade, contrasting sharply with the historical average annual gain of 10.5% since the 1950s [3] - The average returns for the S&P 500 after three consecutive years of over 15% growth are typically 2.3 percentage points lower than the average annual return, suggesting challenging conditions ahead [4] - Apollo's chief economist anticipates the S&P 500 will remain relatively flat for the next 10 years, based on current forward price-to-earnings ratios [5]