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Proper Asset Allocation for Income Streams
The US stock market has shown a lack of response towards income streams within income streams. The author predicts a return to a 'normal' state in the market over the next few years, with a higher payout ratio and dividend yield. This shift would allow investors to allocate capital more effectively among different asset classes based on various income streams' growth rates. The goal is to return to a traditional asset allocation practice based on income streams, similar to historical practices in Great Britain during the 18th to early 20th centuries when wealth was measured in terms of annual income.