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Barry Ritholtz

The Stock Market's Missing Ingredient

The stock market looks as if it is headed higher, even if you're too afraid to invest.
I want to take you higher.                                                              
I want to take you higher.                                                              

Amid a wealth of potential problems, markets are now close to record highs. Military conflicts in Syria, Iraq, Gaza and Ukraine are an unending source of concern. Domestically, economic growth remains below potential. The civil strife in Ferguson, Missouri, reveals the U.S. to be a nation even more divided than previously thought by many. At the very least, the buffoonish local cops there are a national embarrassment.

None of this seems to matter to Mr. Market. He continues to power on, oblivious to issues that don't affect corporate earnings. They have, by the way, been stellar, growing at a 9 percent annual rate. Meanwhile, interest rates are still low and inflation is subdued.