Stocks Are Going to Return Seven Percent a Year

If we know stocks are going to return seven percent a year anytime they're returning considerably less than that we should expect the next few years to be on the other side of the seven percent or the other way around. To 2000 the average real returns on the market were nearly 14 percent a year that was more than twice the average right I mean that that shows you and then we got you know we got to the most overvalued position ever in March of 2000 We had a PE of 30 for the S&P 500, 600 for NASDAQ so you can really get extended if we all knew two years it would turn around it would make us feel a lot better.