Although in fairness, I suppose that’s what spd was getting at with his “animal spirits” comment. But still, my reply to that would be “who cares?”
I am baffled by the idea that it’s somehow good for the economy if people want to overpay for stocks (or houses or other financial assets). That may provide a short-term economic boost via the wealth effect, but that cuts both ways and there will be a reverse wealth-effect if/when asset prices return to normal. (And if they don’t return to normal, then you’ve permanently lowered future returns, ie you just moved returns forward in time a bit).
Sorry spd, not to pick on you… you’ve just hit on one of my pet peeves*, which in this case is trying to derive meaning from short term stock price movements, combined with a second pet peeve which is pretending there is or should be a relationship between stock performance and presidential performance.
* – I have many, many pet peeves and this is a function of my bad personality, nothing to do with you.
