, Columnist
There Is Logic Behind the Stock Market
Even after a rough decline, U.S. equities still aren’t cheap.
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Cast your mind way, way back to when U.S. stock indexes were climbing. (It was three months ago.)
Investors were bidding up U.S. stock prices because of climbing corporate earnings — juiced by tax cuts passed during the Trump administration — and expectations of continued healthy earnings, steady profit margins and further growth from markets outside the U.S. Stock buyers also weren’t expecting much up-and-down movements in share prices, which make investors want to pay less for stocks. The S&P 500 Index hit a record high in September. Sunny skies. Calm waters.