U.S.

Stock Market

Massive Overvaluation

DYI:  Stocks held today or purchased today on a whole sale basis – [S&P 500 index fund or generalized growth fund] – so prevalent in 401k’s these monies ten years later estimated average annual return is (drum roll please) negative 1.25%!

Worst case in 2034 the S&P 500 Shiller PE ends at 10 instead of its mean of 17 (used in calculation above).  These monies will have an estimated average annual return of negative 6.29%!  

Bottom line:  This is a terrible time to invest the U.S. stock market it is massively overvalued.

Link to Money Chimp for calculation for future returns.

Link for Shiller PE and dividend yield.

Till Next Time

Till Next Time