View attachment 543127
That 1978-1980 bull market pretty much disappears if inflation is accounted for. If you had bought the early 70s peak, it would take nearly 15 years to get back to the same point. Would still have beaten holding cash, which lost more than half its value in the same period (~130% from 1974-1987). Sometimes investing just means putting your wealth there where it loses its value the slowest.
Whenever I get bearish I remind myself that if you zoom out far enough, the S&P500 just looks like an exponential function which is exactly what you'd expect if money is created at a roughly constant percentage. This is a reason blue chips work. They don't really need to grow their sales (as measured in number of soap bars/burgers/soda cans) to make their valuation go up.
The above chart in interactive version:
Inflation Adjusted S&P 500 chart, historic, and current data. Current Inflation Adjusted S&P 500 is 5,692.69, a change of -10.77 from previous market close.
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