MarketWatch: The “Buffett Yardstick” May Be Signaling the Worst Risk-Reward Setup Ever

MarketWatch: The “Buffett Yardstick” May Be Signaling the Worst Risk-Reward Setup Ever

In all, long-term investors are risking roughly a 60% decline to try to capture a 0% rate of return over the coming decade in the stock market, one of the worst risk-to-reward setups in history.

If this doesn’t make you want to give up investing in stocks, it’s hard to say what will. After over a year of unprecedented stock market volatility, it should be clear that stock markets are overbought. There are no more gains to be made in stock markets, and investors who fail to diversify away from stocks stand to lose significant amounts of money over the next decade.

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