FOMO Real But Other Fundamental Stock Drivers Also At Work

Conventional wisdom is something that investors generally should be wary of. Right now, the headlines repeat that “fear of missing out,” or FOMO, is driving the U.S. stock market to new highs. True enough but conventionally true. I don’t deny it and we said months ago in these very pages that FOMO might happen—and it is driving equity prices. However, it is not new and is already conventional wisdom.

I believe this rally is more about a potential falling equity risk premium, which sh...

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