In the back of every investor’s mind is the nagging thought that stock prices can’t keep rising forever. What seems too good to be true usually ends badly.
Not to worry. In January alone, the Dow Jones Industrial Average stock index crossed two milestones of 25,000 and 26,000, marking the 202nd time since the March 9, 2009 bottom that stocks had hit record highs. However, some unusual fundamentals are at work which buoy up prices beyond what we might expect based on historic price-earnings ratios and other forward indicators.