Everyone tells me that the US Stock Market is well over valued and that it is going to crash because we are near record highs. But they forget that we are still recovering from two huge bear markets. (2000-2003) and (2007-2009)
If you look at the returns in total of the entire US Stock market in the 21st Century (Since the year 2000, during the last 18 years), you would see that the stock market has been doing poorly. The CAGR since January 1st 2000 is only 5.94%. This is well below the average return (CAGR) of about 9% nominal returns.
If you look at past 18 year stock market average returns you would see the 21st Century has been a disaster so far. For example:
From 1982-2000 the CAGR was: 15.48%
From 1972-1990 the CAGR was: 10.46%
This tells me that the US Stock Market still has room to run in the upcoming years.
If you think I am cherry picking dates, find me another 18 year period where the total stock market has a CAGR below 6%
(Do you agree that in total the stock market has under performed in the 21st Century?)