At HORAN Capital Advisors we have written commentary several times over the past six or so months noting similarities of the current equity market advance to market similarities in the 1990s. Our third quarter 2013 Investor Letter cited multiple or P/E expansion. We also posted a follow-up comment in our January 1, 2014 post, Expectations For The Market In 2014. In the January post we included a chart noting the calendar year returns for the S&P 500 Index in the mid 1990s.
Today, Ed Yardeni of Yardeni Research provided an updated chart noting the current market advance begining in 2009 to the market advance for the period 1990 - 2000. As the below chart shows, the current advance continues to mirror the pattern of the 1990 - 2000 period.
|From The Blog of HORAN Capital Advisors|
Source: Dr. Ed's Blog