FYI: Why do stocks go up so much? Some financial economists think they are converging on a tentative answer.
Why stocks go up is one of the fundamental questions of finance. If it seems like a silly question, it’s only because the amazing performance of stocks relative to safe bonds -- known as the equity premium -- has been a fundamental, unchanging fact throughout our lifetimes. The Financial Times sums it up with the simple declaration: “In the long term, nothing beats stocks.”
Regards,
Ted
http://www.bloombergview.com/articles/2015-06-25/fear-factor-drives-the-stock-market-s-highs-and-lows
