It Makes No Sense!

When faced with the following graphs, I become extremely skeptical of how disproportionate the American market has been since 1987. The maximum discourse is applied, in the current moments, that everything can be justified by the configuration of the current globalization, with massive performance of the technology and, mainly, of Artificial Intelligence [AI] – not leaving out the efficient logistical and informational expansion in which we live. On the other hand, numbers have always been numbers, determining the coherence – or not – of gains and losses over the years, decades and centuries. I’ll leave just one image – of the many in the rest of the content – very intuitive of the frantic, exciting moment we’re living and explain in detail the next sensational graphics below.

S&P 500 accounting for 29x return in 2021. In practice, in a simple and summarized way for understanding: You applied $100.00 and will only have the return on the same amount in 29 years. In 1999/2000, when bubble burst, the Risk x Return was significantly high and did not compensate for the time period of approximately 36x. I won’t go into the speculative details of that moment so as not to make the post too tiring, but I’ll leave a link at the end for the curious.


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