You don’t have to be a stock market genius to understand the next two charts. You don’t have to understand the math to grasp the truth in the next two charts. Wall Street doesn’t want you to understand the next two charts. The MSM purposely ignores the next two charts. Shysters and charlatans tell you to ignore the next two charts.
The CAPE ratio has only been higher in 1929 and 2000. It is now higher than it was in 2007. So what does that mean?
It might not mean anything over the next week, months or possibly even the next year. But, over the next ten years it is a certainty that the REAL annual return of the S&P 500 will be less than 1%. It isn’t different this time. It never is.
The market continues to hit new highs. It brushes off all bad news. Falling corporate profits mean nothing. Recession for the 99% means nothing. Greek default is a sideshow. Worldwide debt at all-time highs is not a problem. Coming conflict with Russia and China will boost the economy. All is well. Right?
