We've seen interim financial cycles which bounce in a few years. The inbound financial collapse will be secular in nature; a very different beast requiring 30 years, give or take, for recovery if history is any guide. Again look at the history. Deflate the S&P 500 through the secular collapse of the 70's and you'll see the peak was in 1968, bottom almost 70% lower in 1982 and recovery to the 68 level in 1994. But you weren't actually back to even, 26 years later, because you then had a capital gains tax liability on the phantom 300% nominal gain. And the 1970's secular collapse was moderate by historic standards. This secular collapse is not going to be moderate. BTW, performance of bonds was even worse.
You say this like it hasn't been happening for the last 15 years :)
We've seen interim financial cycles which bounce in a few years. The inbound financial collapse will be secular in nature; a very different beast requiring 30 years, give or take, for recovery if history is any guide. Again look at the history. Deflate the S&P 500 through the secular collapse of the 70's and you'll see the peak was in 1968, bottom almost 70% lower in 1982 and recovery to the 68 level in 1994. But you weren't actually back to even, 26 years later, because you then had a capital gains tax liability on the phantom 300% nominal gain. And the 1970's secular collapse was moderate by historic standards. This secular collapse is not going to be moderate. BTW, performance of bonds was even worse.