My best set of guesses is we have another huge deflationary asset bubble collapse at some point, that prime minister Abe goes totally crazy in Japan, that the eurozone does not survive intact, that yen-hedged Japanese equities soar, and gold is a safe haven in this mess (especially when central banks respond with still more QE madness).
The most painful scenario would likely be slow torture along the lines of a 10% correction this year, a 6% correction next year, then a 5% rally, followed by a 15% decline, a 7% rally and another 15% decline, etc., for a period of seven years or so.
At the end of seven or 10 years, investors would be down 40-50% without a crash. It would destroy pension plans. Heck, given 7.5% assumptions, even a flat market for seven years would destroy them.
There is one thing he left out. Everyone will be blaming capitalism, especially the people that caused this to happen.
And then, they’ll start regulating themselves more control over the market.