We know this but it’s still a good reminder.
Investors Beware: Bull Markets Don’t Last Forever [Morningstar] – “His analysis highlights that the market’s current setup—high P/E ratios, low dividend yields, and optimism driven by recent returns—has some similarities with what occurred in 1999. Back then, the S&P 500 delivered impressive price appreciation, but valuations reached unsustainable levels. When mean reversion finally kicked in, returns over the following decade were disappointingly low (just 0.1% annualized before inflation).”
Mean reversion is such a clinical way of saying crash. 🤣