Feeling uneasy because the market is at an all time high?

The market is once again at an all-time high. This makes me somewhat uneasy. If you take a look at the recent growth in the S&P500, it’s gotten to a level that looks quite unsustainable. It seems pretty likely things will crash from here.

Except this is not a graph of today. This is the S&P500 from 1960-1990. Here’s one for 30 years ending today:

Doesn’t look too different. The problem with always having today’s date as the ending point in a graph is that exponential graphs usually look like that. In exponential growth, the biggest gains are usually at the end.

This is not to say that the market is currently overvalued. Maybe it is. But it’s not insanely overvalued just by looking at a graph going straight up. There are ways of measuring how overvalued/undervalued the market is, like the CAPE ratio.

This is not financial advice.