TD Securities: US Equities 'Lost Decades' Saw Flat to Negative Real Returns; Small Caps, Value, Energy Outperformed
TD Securities analyst Izidor Flajsman examines historical US equity 'lost decades' and finds headline indices delivered flat to negative real returns, while small-cap, value, energy, and non-durables sectors outperformed.
In a recent analysis, TD Securities' Izidor Flajsman reviewed past US equity 'lost decades'—periods when broad market indexes delivered flat or negative real returns. According to the research, headline indices such as the S&P 500 showed minimal or negative performance adjusted for inflation.
Flajsman noted that certain segments of the market managed to outperform during these challenging periods. Specifically, small-cap stocks, value-oriented equities, energy shares, and non-durables consumer goods offered relative resilience and positive returns.
The findings highlight the importance of sector and style selection for investors navigating prolonged market stagnation.
Source: FXStreet Forex News