SOS How does S&P since 1871 looks like?

Interesting charts for almost 140 years. Worst case, S&P will be around 300 to 400. So there is about 1000 points to go, about 70%.

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S&P over and under valuation can be based on many methodology. Most like to use PE, which indicates currently at historical low (past 26 years) based on historical earnings. Should you use dividend yield, it is at 84 years historical low. So much for fundamental analysis, depends which indicators you choose.

Stock markets are hardly efficient, neither are they rational. It is inefficient and emotional. One day, they say Greek problem cause the market to go down, two days later, they say Greek finally resolved, market goes up again. Another day, they say Portugal, Libya, Egypt, China, Japan. One day say terrorist, tsunami, flood, hurricane, earthquakes. You name it, there are thousands of reasons.

According to Robert Reich (ex-Clinton), in the 1980s, 1% of the highest income earners own 9% of total income, today they own about 25%. The median income remain the same over the last 30 years. The one percent now pay less tax than 30 years ago, even though they own 25% of the total income now. In short, the rich influence the governments in its policies to their advantage at the expense of the remaining majorities until one fine day it implode, like DEBT and DERIVATIVES.