Stocks Can't Outperform Business Indefinitely

The present housing debacle should teach home buyers, lenders, brokers and governments in simple lessons. Home purchases should involve an honest to God down payment at least 10% and monthly payments that can be comfortably handled by the borrower's income. If American business in aggregate earns about 12% on equity annually, investors must end up earning significantly less. Bull markets can obscure mathematical laws, but they cannot repeal them.