Quote:
Originally Posted by bizaro86
Yeah, 100% US equities is definitely more risk than the average retiree could handle I suspect. 30 years of dropping interest rates probably also increased the average equity market return, if you compare the market multiple now to the multiple in 1982 it seems like there could be some upcoming sequence of returns risk...
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Definitely, but 1982 was the bottom, so that doesn't seem like a very good comparison. Better to use long term historical averages. And by that metric, the US market - specifically the S&P500 - is quite high as you say, but not as insane as it would look against 1982.
The rest of the market, BTW, and the rest of the world equity markets, are not at all expensive, by way of their multiples. It's just those damn 100 or so, ridiculously priced tech stocks.
Anyway, sorry, back to retiring on $40k/year.