Quote:
Originally Posted by GregWeld
If you click a chart of the SPY --- 10 years out.... this is a ETF that is the S&P 500 stocks.
What you'll see is a peak in '07 and a price of about $149 a share.... then a big decline... then the rise to current value. Current value is $212. That's a 56% rise ==== not 200%
You can't use the bottom to calc a gain like this - because you first need to get back to it's old high.
The market is "high" because there's little opportunity elsewhere to put money. But I don't see any bubble - except in certain stocks. Go back to the P/E of your stocks and see where they are individually. That's a price to earnings multiple. I would call the market "normal" if the average P/E was about 17 ish. The current P/E is at 20 so slightly high. But you have to look at this as a WORLD market.... and money flows to safety and return. Right now - the USA looks pretty damn good compared to the rest of the world.
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Thanks for the info. A majority of the stocks in my portfolio are well above the 17.