Stocks move first and then logic follows. It happens every single time. This time it's no different.
Globally stock markets are hitting record highs every single day with little to no correction. Majority of market participants now seem to be convinced that this is for real and everyone now blaming ZERO interest rates policy of three major economic blocks - Europe, Japan and USA. As one fund manager rightly puts it - "There is nowhere else to park money"
It's the TINA factor (There is no Alternative) that's driving the Global equity markets higher because Central Banks have time and again assured the world that there will be no hike in interest rates for next 2-3 years. In such an environment, stock is cheap.
Here's Wharton School Professor of Finance Jeremy Siegel explaining this new world.
The blogpost is purely for educational purpose