Britain's Institute of Fiscal Studies (IFS) is warning of a "lost decade".
Net income for the average household will drop by 7.4% during the three years to April 2013, the institute states.
That's around £2,500 ($4,000), and is the largest fall since records began.
Even by 2015, net incomes will still be lower than they were in 2002.
And with low interest rates and flat-lining shares, investors are going to struggle to recoup these losses.
Or will they?
Maybe alternative assets are the answer.
Take Winston Churchill.
A man who did so much to help his people in tough economic times - he was a driving force behind the introduction of the welfare state in the early 1900s - can perhaps be of assistance again.
The value of Churchill's autograph has risen by 7.82% pa since 2000, from £2,600 ($4,100) to £5,950 ($9,360), according to the PFC40 Autograph Index.
That beats the FTSE 100 and any ISA or savings account currently around.
The war time Prime Minister is hugely popular with investors both in the UK and USA.
Here is an alternative asset that offers you an exciting form of diversification.
Churchill memorabilia has a low correlation to the stock market and can be traded anywhere in the world.
Churchill memorabilia is also very rare; in 1995 Churchill's collection of pre-1945 letters and speeches sold for £12.5m (approx. $19.6m).
We only have one Churchill item in stock, this handwritten, autographed letter, which is available for £4,950 (approx. $7,780).
info@paulfrasercollectibles.com
+44 (0) 117 933 9503
Churchill's autograph is just one of several tangible assets that are beating the stock markets year after year.
Take a look at the figures for rare autographs yourself.
Lost decade?
For those in the know, it could be the decade of opportunity.