The Standard & Poor’s 500 Index will have negative inflation-adjusted returns during the next seven years because U.S. stocks are so overvalued, said Ben Inker, head of global asset allocation at investment firm Grantham Mayo Van Otterloo & Co.

“The U.S. stock market is trading at levels that do not seem capable of supporting the type of returns that investors have gotten used to receiving from equities,” Inker wrote in quarterly letter released yesterday. Stock values “will be resolved either through a relatively quick bear market or a longer period of more of less flat returns.”

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