The “Lost Decade” in stocks is the period since 2000, when stocks in general have been mostly flat. The reason behind the so called lost decade, is the fact that stocks were overvalued during the last leg of the 1999 – 2000 bull market run. Investors typically have a short term memory of financial market events. Over a decade ago, demand for speculative internet stocks with no earnings or revenues were high, and the good times were expected to keep on going forever. Now, after two severe stock market declines due to the tech and financial sector implosions, investors are again projecting the past onto the future. This time however, investors are forecasting doom and gloom. In a previous article I discussed the fact that stocks are cheap. In fact, stock valuations are at their lowest levels in years.