Home Info-Graphs S&P 500 – A Warning?

S&P 500 – A Warning? [CHART]


By  Brad Cornell

It is easy to lose perspective when things are going well and for stock things have been going well for quite some time.  The chart table below gives the total returns on the S&P 500 for the years 2008 through the current point in 2015.  Since the collapse in 2008, it has been up, up and away.  From the end of 2008 onward, the S&P 500 has average a compound return of over 15% in an environment of little inflation and with short-term interest rates close to zero.  But the continued rise stretches valuation thinner and thinner.  Stocks clearly cannot go on performing as they have relative to interest rates and inflation forever.  The question is when will stop, or even reverse.  If I had a good idea I would be trading rather than writing this blog.  (Well to be fair I am trading, but cautiously.)  Although I can’t predict the future with any accuracy, in my view a warning is in order.

S&P 500 Total Return
2008 -37.00%
2009 26.46%
2010 15.06%
2011 2.11%
2012 16.00%
2013 32.39%
2014 13.69%
2015 2.65%

NO COMMENTS

The Life and Career of Charlie Munger

You can learn from Charlie Munger firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing

Never Miss A Story!

Subscribe to ValueWalk Newsletter. We respect your privacy.

    Subscribe

    We won’t send you spam. Unsubscribe at any time.
    ×
    Exit mobile version