You misunderstand the real affect inflation is having on market valuation. A dollar today is worth a great deal less than it was in 2007, hence the huge increase in market valuation today compared to 10 years ago.

Your money (portfolio) is worth a great deal less today than it was 10 years ago. Want proof, go buy a house, a car, get insurance on either. Your returns sound good but don't keep up with real inflation.