Monthly Archives: November 2013

How Can Investors Decide if Stocks Are a Bubble?

  The SP 500 appreciated 29% in 12 months plus it yielded 2% for a total return of 31%. The total return for stocks over many decades has been 9.5% annualized (of which 7% was appreciation) and during the great bull market of the 1990’s it was 17% annualized. The run up of the current year was far in excess of any forecast by experts interviewed in the media in January. There is no adequate explanation of why such a huge increase occurred. No magic new labor saving, profit enhancing device has been invented, no tax cuts have been enacted, etc. So the huge increase in excess of a more reasonable 7% average annual price

November 18th, 2013|mayflowercapital blog|Comments Off on How Can Investors Decide if Stocks Are a Bubble?