Lower GDP growth does not mean lower stock returns
“All corporate growth has to funnel through return on equity,” Mr. Grantham writes. “The problem with growth companies and growth countries is that they so often outrun the capital with which to grow and must raise more capital. Investors grow rich not on earnings growth, but on growth in earnings per share. There is almost no evidence that faster-growing countries have higher margins. In fact, it is slightly the reverse.
Source: GMO's 4Q letter