Stocks Are Nowhere Near Their Real All-time Highs

Let's try to keep it real for just a second. Stocks are on fire, no question. And not just US Stocks, but indices all over the world are ripping higher. But we need to put things into perspective and recognize that we are still nowhere near the real all-time highs for stocks. Sure, in nominal terms the S&P500 is just 7% from reaching the 2007 highs. But in real terms, inflation-adjusted, we're still over 40% away.

Here's a chart of the S&P500 adjusted for inflation using the Consumer Price Index:

Shouldn't purchasing power be something to consider when analyzing returns? Lower highs and lower lows is what I see...

Source:

Standard & Poors 500 Composite - Monthly From 1871 (TheChartStore)

Tags: $SPY $SPX $ES_F