Why is the stock market so high? I get asked this riddle every day.
The standard answers we hear these days are that the market is anticipating another $2 trillion Donald Trump-Nancy Pelosi stimulus bill (either before or right after the election) and investors are craving another drink from the federal firehose. Deficit spending has apparently become the crack cocaine for investors.
Economists at the Federal Reserve Bank, UBS, Bank of America, and Goldman Sachs also tell us that a President Joe Biden would be bullish for the markets because he will deluge the economy with even more deficit spending in the trillions of dollars.