Are All-Time Highs in the Stock Market a Cause for Concern?

The stock market has been hitting all-time highs, and that has some investors worried.

It’s understandable why some investors are feeling concerned. Stocks have been climbing for the better part of five months, even as interest rates remain high, inflation remains above target, many Americans are feeling down on the economy, and the geopolitical environment is unstable.

And yet stocks keep going up?

It may be a bit of a head scratcher, but we do not think investors should be surprised by the recent market rally, nor worried that the stock market is behaving irrationally. If we consider current economic and corporate earnings fundamentals—alongside a few insights from stock market history—we think recent gains look reasonable, if not justified.