Robert Shiller predicts lower S&P 500 returns over the next decade

Nobel laureate Robert Shiller predicts significantly lower S&P 500 returns over the next decade, forecasting a potential "lost decade" similar to the early 2000s. Shiller's cyclically adjusted price-to-earnings (CAPE) ratio, a key valuation metric, is at historically high levels, suggesting diminished future returns. His model anticipates an average total return of just 1.3% annually for the S&P 500. He advises investors to seek undervalued stocks and consider international markets like Europe and Japan, which currently offer more attractive valuations and potentially higher returns.