I do hear many people talking about (and parroting) how the stock market is overvalued, and that more correction is needed. They cite pandemic highs, etc. However, the S&P 500 from December 2019, just before the pandemic, it was 3,200. If we apply an average annual return of 8% (which is not unreasonable to me) from then till now, the S&P 500 would be 4,030. So, why do some people still go as far as saying that it should be below 3,000 when the market was not even that low before the pandemic? Even at a return of 5%, it comes out to above 3,700. Perhaps I may be missing something.
Submitted December 30, 2022 at 12:58AM by Reafricpysche https://ift.tt/xa12N3r
