Why is the stock market rallying right now?

Interest rates trending lower plus the largest companies in the world are making insane amounts of money and they drive much of the market.

just don’t understand. High employment, uncertain presidential election year, high interest rates, record inflation. But the stocks are trending the highest ever.
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Your interest rate and inflation statements are no longer true. Both are trending down from last year.

Business is good, especially for large cap. Look at the strength from big guys like Walmart, Costco, Amazon, Microsoft, and Nvidia. 2nd half of the year will be hard pressed to stay this strong overall, but we are riding right now.

The markets are always forward looking trying to predict what the economy will look like in ~6 months time. You can’t judge the markets based on current economy and vice versa. This is also why it’s so hard to time the market bc it is forward looking.

I’d argue due to inflation that stocks are the only thing currently that can yield a higher return than the inflation rate.

Yes inflation is slowing but during the highest points many people racked up debt and need to pay it down.

Also capital is expensive so you see less money going towards risky startups and more money towards established companies and blue chip stocks. Add in record profits in blue chips yielding good dividends and it makes stocks a good investment currently. We are seeing a 15% return on our portfolio currently

What I don’t understand even more is the older guys at work telling me they can’t retire because Biden crashed their 401ks

Anticipation of lowering rates. A whole lot of money was on the sidelines or in money markets making five percent and now want into the market that has been exploding to the upside. Inflation is awful thing, but the great resignation, govt handouts to the middle class that did not need it and hyper wage growth during that time has helped prop up the consumer and keep the economy going strong.

The only thing holding the market back is the continued prediction of it crashing. Even high interest rates have not been an issue. It has really proven what so many have said all along, rates were held artificially low and this economy has proven it can handle regular rates in stride. Inflation adjusted returns since 2008 are at 7.5%, so over a longer period, runs like this are just averaging out the market to expected historical type returns.

Every restaurant, shopping mall, and bar is packed to the brim every week Thursday-Sunday. People keep talking about hard times and I see nothing driving around every week that suggest that. People spending money everywhere.

you think a couple of months of good stock numbers makes up for 3 years of bad ones

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you think a couple of months of good stock numbers

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Go back and start over if you think this has been just a couple of months

AI buzz, economy/earnings held up better than expected, inflation going down, anticipation of Fed cutting rates.