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14 Years Later: The S&P 500 Shows No Gains

ByChris Kimble
Published 07/30/2014, 11:56 AM
Updated 07/09/2023, 06:31 AM

The S&P 500 Since 2000

Is the S&P 500 doing a good job of beating the cost of life? I suspect many investors own stocks with the goal that the returns by the broad market will outpace inflation. The above chart by Doug Short highlights that since 2000, the S&P 500 on an "inflation-adjusted" basis is still below where it was 14 years ago.

an "inflation-adjusted" basis is still below where it was 14-years ago. - See more at: http://blog.kimblechartingsolutions.com/2014/07/this-is-the-pitts-14-years-later-sp-500-makes-no-gains/#sthash.5yJn1tGc.dpuf

.The S&P 500: Return Vs. Margin Debt

The above chart takes a look at the Real Return of the S&P 500 and "margin debt." The latest release release on margin debt reflects it is near all-time highs. In the past the stock market ran into trouble when margin debt was high and turned sharply lower. At this time, that is NOT happening.

If investors borrowed even more, could that help the S&P 500 break above the old 2000 highs? Maybe the solution is this Mad Mad World is as simple as...."Borrow Baby Borrow!"

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