I don’t have a degree in finance. And Warren Buffett has never called me for advice. But I believe that the stock market’s rise is mainly due to low interest rates.
Suppose you want to save for a long-term goal. CDs won’t do the trick anymore. Neither will most bonds. So you are pretty much forced into the stock market. And in doing so, you’ll be bidding up prices.
Now, if interest rates started returning to normal, I’d guess that the stock market would start cooling off. If I’m proven right about this, please congratulate me profusely. But if I’m proven wrong, I’ll just claim that the Russians hacked my FR account, and posted this.
LOL