Parodox of wealth and the effect on expected return

William J Bernstein's article on "paradox of wealth" http://www.cfainstitute.org/learning/products/publications/faj/Pages/faj.v69.n5.1.aspx highlights an important investment rule implying that the expected return is inversely related to the wealth level created. Key points to taken from this article:

Rapid technology development is a destroyer of return(decreased return) by

1) Increasing societal wealth but decreasing cost of capital since there is an abundance of capital if the society get richer

2) Encouraging enthusiasm from gullible investors, meaning they are more willing to invest more capital therefore reducing cost of capital

3) Diluting shares as increase in share issuance required to capitalize new forms of technology and rapidly growing economies

So what's the implication for investor in the future? I think it is prudent not to assume a high return on equity in the future. This has also implied that the aggregate P/E of the companies in the future will be higher than the present level due to technological advancement and wealth creation effect. 

This can also shown from the generic valuation formula that as the denominator required to discount the future cash flow into present value decreases, then the valuation will become more expensive in the future.