A Japan-style slump may be on the cards

There are striking parallels between what's happening to Western economies now and what Japan has been experiencing for years. Unfortunately, that means the outlook for stocks is very bleak indeed.

We try to use [this newsletter] as a platform for our general thinking and offer insights. One thing that holds true is that compared to most portfolio managers, we do things differently. The reason for this is very simple and is embodied in the following statement: "At different times, for different reasons, different asset classes behave differently". Any investment process that relies predominantly on one particular asset class such as equities might, for a long time do very well but then eventually, unless the investor makes big changes to his portfolio, suffers a period of disastrous returns.

We believe the most recent bull market for equities started in 1975 and ended in the year 2000 25 years of year-on-year returns that required no imagination, no thought process, just adherence to the simple principle that equities always do best in the long run! Except, and this is the snag, they don't.

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MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.