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Legendary hedge fund manager Stan Druckenmiller, in an interview with Palantir CEO Alex Karp, recently gave a pretty bleak assessment of the stock market in the years ahead.

This may leave some wondering what specifically makes Stan so bearish today. Well, as the Fed recently warned, the windfall in corporate profits driven by both interest rates and corporate tax rates falling to the floor is a phenomenon that simply won’t be repeated.

And in the context of equity valuations that have come to discount that phenomenon continuing indefinitely into the future, that’s a real problem.

As a result, investors are likely going to have to do more than just passively buy and hold a broad stock market index if they want to avoid a prolonged period of negative real returns.