[Still Thinking]

S&P closed ‘98 at 1229, today at 2545, or 3.7% annual rate of return for the last 20.

[central_va]

Adjust that ‘98 figure for inflation.

[Vermont Lt]

It would be significantly less if you compound. I would have to go back to my fin math book to figure that out.

[alternatives?]

“S&P closed ‘98 at 1229, today at 2545, or 3.7% annual rate of return for the last 20.”

Don’t you need to add 1.0% to 1.5% for dividends?

1998 was about the time of Monica. I figured the market was going to blow and it never did.

The problem is many pension funds are planning on 7.0% and they are not going to get it.

Who is going to buy? The only reason people have been buying is the low interest rates. Who has money left to buy when the boomers need to sell?

I have also been trying to figure how much of the market being up is due to a declining dollar versus real income.