Next market crash to last 20 years, warns strategist

Core Viewpoint - Market strategist Gareth Soloway warns that the next major U.S. equity downturn could lead to up to two decades of stagnation rather than a sharp crash followed by a quick rebound [1] Economic Trends - Countries that have historically been major buyers of U.S. Treasuries are reducing their exposure, with China’s pullback and broader sovereign diversification indicating a shift towards de-dollarization [2] - A sustained break below a key long-term support trend in the U.S. dollar could signal structural weakness, suggesting that reduced Treasury demand may persist as U.S. debt continues to grow [3] Market Outlook - Soloway likens the potential market outlook to Japan's post-1980s bubble era, predicting prolonged sideways trading with repeated drawdowns, and warns that new all-time highs may not materialize for at least a decade [3][4] - The market could experience down periods of 20%, 30%, or even 40%, but a sudden crash similar to the 1987 event is harder to predict [4] Impact on Sectors - The current environment is expected to be particularly damaging for retirement savers who rely on long-term capital gains, as persistent inflation combined with stagnant stocks could erode purchasing power [5] - Soloway is bearish on the housing market, citing affordability pressures and rising supply as baby boomers sell properties, predicting that real estate prices will remain flat or trend lower over the next two decades [7] Investment Strategy - Investors are advised to prioritize preserving purchasing power over seeking double-digit returns, with a focus on diversification into assets such as gold, silver, and Bitcoin [6] - Cash or short-term Treasury bills may provide stability during market drawdowns, while dividend-paying stocks could serve as a partial hedge against inflation [6]