Wednesday, January 23, 2013

Boom market 2013?


The S&P is approaching its 2007 peak, which is basically equivalent to the peak just prior to the .com crash. 

As an essentially passive index fund investor I like to take a look back at times like this:

The market stopped making sense to me around 1995 -- almost two decades ago. So I like to put a ruler on the 1980-1995 trendline and see what the S&P would be today if the market had continued to make sense.

Today I get about 1,000, so we're currently 50% above that old-timer trendline.

For whatever that's worth.

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