Nose Bleed

Valuations

Equals Sub Par Returns!

Source:  Of Dollars and Data

10k invested

How long before I made my money back including ravages of inflation???

S&P 500 (early years historical recreation for index)

All dividends reinvested no further investments made.

 

Shiller PE at 22...Year 1902 recovered 1921...20 YEARS

Shiller PE at 27...Year 1929 recovered 1934...6 YEARS*

Shiller PE at 22...Year 1964 recovered 1979...16 YEARS**

Shiller PE at 17...Year 1972 recovered 1983...12 YEARS

Shiller PE at 44...Year 2000 recovered  2014...15 YEARS

Shiller PE at 37...Estimation 2034 to 2039... 10 to 15 YEARS.

*The reason for such a fast recovery from the 1929 to 1932 crash as the decline increased dividend yields significantly AND the economy experienced MASSIVE DEFLATION thus surging purchasing power of the U.S. dollar.

**1971 President Nixon (Republican) ended the last vestige of the gold convertibility of U.S. dollars. Since that time the only backing the U.S. dollar has is the taxing power of its citizens. The 1970's and early 1980's was marked by very high inflation.