Strategists warn investors to prepare for ‘lost decade’ in U.S. stocks

Is a lost decade in the U.S. stock market on the horizon?

U.S. stocks have been in a bull market for nearly a decade, one of the longest in modern history. But this could change soon, warns Morningstar.

Speaking at a company event in London on Wednesday, Morningstar strategists say the long-term outlook for U.S. stocks does not look bright. In fact, the next 10 years may be a “lost decade.”

“Our expectation at the moment is that you won’t have any real return from U.S. equities over the next 10 years,” said Morningstar’s Dan Kemp, who shared a chart to the audience:

So, where should you park your money?

Surprisingly, in the United Kingdom, says Morningstar’s Mike Coop.

“The U.K. EWU is giving you a much better real return, with roughly equivalent levels of risk to the U.S.” Coop told attendees.

Despite the U.S. market routing the UK market, it is important to take the long view, urged Morningstar analysts urged.