Stockmarkets TEND to rise gradually; recently they have soared. American stocks are up by 21% since the end of October and stand roughly 5% above their vertiginous peak in January 2022. On February 22nd Europe’s equities set a new record for the first time in two years. India has been enjoying a multi-year boom as optimism about its economy abounds. Even Japanese stocks—a byword for stagnation—have at last exceeded the level they reached in 1989 before a decades-long slump. It has been an extraordinary run. Since 2010, the S&P 500 index of American stocks has returned 11% a year in real terms.
This article appeared in the Leaders section of the print edition under the headline “How high can markets go?”
From the March 2nd 2024 edition
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