Prepare for lower profits
Along with the cost of mopping up the world financial crisis, estimated by the IMF @£7.1tr. It may be that there is a new age of companies making less money, banks with less to lend making each pound work harder; as a result shares could start to trade on lower multiples of their profits. The cost in mopping up the crisis will still have to be paid back, and current low interest rates cannot be sustained for ever. Against this backdrop it is hard to see why company valuation should get anywhere near where their previous highs.
