. . . to 1.415 from 1.419.
The ratio was 0.74 at the end of 2008, indicating that the stock market was 91.2% more expensive at the end of September 2014 than it was at the end of 2008.
At rich valuations the return from stocks over the subsequent long haul is surprisingly small. From the peak in August 2000 to now the average nominal return from the S&P500 has been just 4.22% per annum, with dividends fully reinvested. From the peak in October 2007 to now the average nominal return has been 6.35% per annum.
The great bull market from July 1982 to August 2000 produced an average annual return of 18.99%.
