The real reason the stock market keeps climbing

The stock market continues to hit record highs — here's what's behind it.

Transcript

00:00All right. So we're looking at an S&P 500 at another record high. Does S&P above 6,600 make

00:08sense to you or is this market overpriced? I think it makes sense to me. I mean, the thing

00:12about market highs is you're going to hit a lot of market highs in your life. They happen about

00:16once every two weeks on average. Valuations are a bit extended, but at the same time, it's still

00:24a good economic backdrop. At least inflation expectations, relatively stable. Fed's going

00:30to cut. It's supportive for equity markets. What is it, though, that's driving this market

00:35higher right now? Is it the economy? Well, you've had a lot of the concentrated move in the big

00:43tech names. That's really a bit more of a 2024 story than this one. I mean, yes, technology

00:50has done very well. But if you look at the percent of stocks above their 200-day moving

00:55average, it's not like it's 20 percent, right? You're well above half. So it's a broader market.

01:02You've seen financials. The big banks participate. The industrials are participating. So those sectors

01:08are usually attuned to a better economic environment. And so, yeah, it's not just tech.

01:20You're in the top of this market. You're in the top of this market. Go into the top,

01:2410 percent hust

01:31and you pull the trains bigger, go into the꺽's R mondo, a platform like, but you look for

01:35time, too. So deal with money as well.

01:36You're available for the mortgage, right?

01:37And if you look for a cross, fully and you're theуз trap, you look for youregtans and

01:41obviously don't pay us actually relación. You're not going on a path.

01:45Yeah.

01:45So you look for time.