“This time is different.” Sir John Templeton famously called these, “the four most dangerous words in investing,” but that hasn’t stopped many pundits from pointing out the obvious ways in which this time is truly different from the past.
And I don’t disagree with them. In fact, we have seen this plenty of times before. During the late-1920’s stocks rose to valuations that were unprecedented at the time. They did so again in the late-1990’s. And it’s true once again that things are now very different than what we have witnessed previously in the markets.