SPXL - Stock Market Super Bubble And The Demographic Trigger

1986 Tax Reform Launches Super Bubble

Above-average stock market return with below-average growth since the 1986 tax reform appears to have inflated a huge bubble.

The stock market returned about 6.5% a year after inflation and dividends for about a century. The best fit line from 1871 through 1986 shows the 6.5% annual return.

Since 1986 the best fit line shows a 6.4% rate, while the actual return has been at a 7.9% annual rate, which is about 20% above the rate of return over the previous 95 years.

Meanwhile 1986 marked the beginning of

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