I think the underlying question is "what is the alternative?". Twice a month everyone in the US from the middle class up, has to invest a fairly substantial chunk of money. With the FIRE movement this is only growing. Where but in the stock market should that money go? We've created this firehose that will continue to pump money into the market regardless of what the economy is doing. If you take the perspective of an individual, long-term investor, this isn't even irrational. What else are you supposed to do with the money? Keep it in cash? You also don't want to start playing the market timing game. So the firehose keeps on hosing.
I do wonder and am concerned what the endgame is. Is this all gonna crumble like a Ponzi scheme? Is it just gonna smooth off as more investors start retiring and pulling money out? Maybe at that point this will all just turn into a fairly indirect redistribution from working, young people to current retirees, as we see in some national pension systems?
One thing is for sure, the stock market reflecting on people's near- to mid-term outlook of the economy is likely over.
I do wonder and am concerned what the endgame is. Is this all gonna crumble like a Ponzi scheme? Is it just gonna smooth off as more investors start retiring and pulling money out? Maybe at that point this will all just turn into a fairly indirect redistribution from working, young people to current retirees, as we see in some national pension systems?
One thing is for sure, the stock market reflecting on people's near- to mid-term outlook of the economy is likely over.