The "Great Bull" market that came after the financial crisis is dead due to slowing economic growth, rising interest rates and too much debt, according to a Bank of America Merrill Lynch analysis.
In its place will be one that features lower returns, the bulk of which will be concentrated in assets that suffered during the recovery, Michael Hartnett, BofAML's chief investment strategist, said in a wide-ranging note looking at markets 10 years after the collapse of Lehman Brothers.
"The Great Bull Dead: end of excess liquidity = end of excess returns," Hartnett said.
The liquidity reference is to central banks that have pumped in $12 trillion worth in various easing programs that have seen 713 interest rate cuts around the world, according to Merrill Lynch. Leading the way has been the U.S. Federal Reserve, which kept its benchmark interest rate anchored near zero for seven years and pumped up its own balance sheet to more than $4.5 trillion at one point.
All that stimulus has led to a 335 percent surge in the S&P 500 since the crisis lows.