How Excess Global Saving and Investor Exuberance Brought a Secular Rise in U.S. Stocks

Authors :: William L. Scott
Source :: SSRN Electronic Journal.
Publication Year :: 2020
Publisher :: Elsevier BV, 2020.
Abstract: This short paper shows how excess global saving led to asset price inflation in U.S. stocks during 1981 to 2019. It compares stock PE ratios to corporate bond values to explain that investor exuberance for stocks enabled and enhanced the extent of the secular stock rise.

Subjects :: Corporate bond
Short paper
Economics
Monetary economics
Stock (geology)
Asset price inflation

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