The Dow rose 323 points yesterday, or 1.8%.
People come to think what they must think when they must think it. But what do they think now? Why do they think stocks are so valuable?
Apparently, they believe that Janet Yellen, Mario Draghi and Haruhiko Kuroda – the powers that be – will continue to make stocks go up.
The Fed has stopped active liquidity pumping. But it still has its hand on the pump handle, just in case.
The European Central Bank is promising and preparing to pump as soon as it can get the Germans out of the way. And the Japanese – the world leaders in modern state finance – are pumping with both hands.
Gaming the System
Since 2009, the Fed has put more than $3.5 trillion to work on investors' behalf.
This – along with the help of the ECB, the Bank of Japan, the Bank of England, the People's Bank of China, etc. – has helped lift stock markets by $18 trillion.