Yes the stock market might be hitting all time highs in nominal terms, but not in real terms. What do I mean by this?
Well due to inflation you have to adjust where the stock market is now with where it would be given the cost of living. The stock market actually hit an all time high back in the spring of 2000. When you adjust for inflation. It's still 100 points below that high.
The nominal amount back then for the S&P was 1,527 but when you bring that number up due to inflation it's actually over 2,100 in today's dollars. So we still have 100 point to go before we get there.
There is a word of caution in this. People still don't comprehend how overpriced the stock market was back then in 2000. Even though it was 14 years ago, it was by far the most overvalued market in the history of the USA. We're only 5% away from it now. Be cautious my friends!
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