Was 2013 a Record Shattering Market Top?
There have been three stock rallies in 89 years comparable to 2013’s. These were 1945, 1958, 1989 to compare to 2013.
In 2013 the market had a 34% Total Return and the 12 month CPI was 1.5%. In 1989 inflation was 4.8%, so deflating 1989’s 36% Total Return by the amount that its inflation exceed 2013’s, about 3%, means that the 36% Total Return of 1989 was more like 33% versus the 34% of 2013, so truly 2013 was a record shattering rally. In 1989 there was huge global bubble top caused by Japan which inflated U.S. real estate and …
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