Summary

• US large-cap index is up about 250% over the last ten years, compared to a 70% gain for the FTSE 100 and a measly 35% gain for the FTSE 250.
• Over the last 40 years, the S&P 500’s price has gone up by an average of 9% per year, which is 2-3% more per year than its earnings or dividends.
• Like other equity indices, the S&P 500’s valuation swings from high to low as investor sentiment swings from excessive optimism to excessive pessimism.

Since 2013 (or thereabouts), investors have lived in a world where there appears to be no alternative to investing in US stocks and the S&P 500 in particular.

And with the benefit of hindsight, investing in