The S&P 500 briefly traded above 2000 yesterday for the first time. The all-time high inspired some analysts to announce (not necessarily for the first time) that the stock market was in bubble territory. But there’s a reason for the bull market: economic growth. We can debate if the growth is sustainable or even genuine–some say it’s an artifact of central bank liquidity. But that’s a separate issue. Growth is still growth, and the market’s reacting to current conditions accordingly.
Continue reading →