Ofcourse it will reverse. Sure, the P/E is on the high side and so the expected returns won't be as good as they can be but hey, you're already 20% down (or mo

Ofcourse it will reverse. Sure, the P/E is on the high side and so the expected returns won't be as good as they can be but hey, you're already 20% down (or more in real terms). If we we're going to see 8% inflation over the next few years then sitting in cash is going to see your money get erased. Bond rates are still way too low. Housing is somewhat inflation resistant but it has also been terribly inflated. So stocks look like the best option right now, if we go more down they'll be even better ;) EDIT: Just to be more specific, I'm pretty sure that in ~5 years you'll at least maintain your real value and in 10 years you'll have a decent real return. Pretty decent probability anyways. In 10 years you'll beat the 10 year bond and the housing market (or gold, or cash or bitcoin). I'm sure some sectors will over-perform and some will under.