Is a bubble about to burst? Some facts to consider.

Since May 30th of 1996:

Index | Open | Close | Annualized Return
-|-:|-:|-:
S&P 500 | 667.93 | 7580.06 | 8.43%
Nasdaq Composite | 1226.88 | 26972.62 | 10.84%

Ask yourself this. Does an annualized return of 8.43% (excluding dividends) sound like it is excessive? How about 10.84%?

I personally think that when you remember stocks had a lost decade+ from 2000 until 2012, you come to the conclusion that stocks are just making up for some lost time right now. At least that’s what it appears considering the past 30 years.

Please feel free to correct my math or my data should you find an error.