If global growth keeps at 4-5% (stock market assumes), then every 15 to 20 years global GDP will double. In 100 years, GDP would grow 32 times. Is it reasonable? No! Can our earth support this kind of growth? NO!
Now let's look at where growth will come from. In last century, it was population growth plus industrial revolution. During 1990s, it was information revolution. Growth from technology and population growth has slowed since year 2000. In order to push the growth, government and companies started to use financial leverage to expand. It was a debt induced growth in last 10 years. It was also a decade of BRICs emerging. The debt bubble has since been bursted. Population growth is slowing. Environment issues (Global warming, clean water and pollutions) have put restraints on growth as well. In addition, resources shortage eventually will put a brake on growth.
I truly believe global growth will not exceed 2% over long run. So stock market growth will come from efficiency rather than revenue growth.
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