Dow 40,000 & Counting

Boomer-led households’ collective net worth has skyrocketed 19-fold since 1990. As the generation has lived long and prospered, so has the stock market (rising 40-fold over their adulthood) and the US economy (with nominal GDP up eightfold since 1982). … Looking ahead, our Roaring 2020s scenario assumes faster-than-average growth for S&P 500 earnings, GDP, and productivity. Faster productivity growth should depress unit labor costs and inflation in a process that began last year. More of the same, as we forecast, should boost profit margins to new record highs. … Also: Just ignore the doomsaying LEI. … And: China’s latest attempt to hoist its economy.