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It is widely believed that economic growth is good for stockholders, and growth forecasts are a staple of international asset allocation decisions. However, the cross-country correlation of real stock returns and per capita GDP growth over 1900-2002 is negative. Alternatively stated, economic growth does not benefit equity holders. Equity holders receive dividends on the shares they own today. Economic growth occurs from high personal savings rates and increased labor force participation, anddoi:10.2139/ssrn.667507 fatcat:vwnfuvcazjgcjc5tyiswmqngb4