Wall Street Veteran Predicts 7 Yeras of Lower Stock Market Returns

A Wall Street veteran warns that American households, with historically high equity holdings, could face “seven lean years” of stock market returns. According to Joseph Lavorgna, the U.S. household equity share of total financial assets stood at 36.3% in the third quarter, down from a record 40.5% but still notably high. This elevated equity exposure is significant because historically, high percentages of equities in investment portfolios have been associated with below-average future stock returns.