Brandon Stockman explains why the stock market generally rises
Updated
Updated · Lost Coast Outpost · May 3
Brandon Stockman explains why the stock market generally rises
7 articles · Updated · Lost Coast Outpost · May 3
The wealth adviser at Johnson Wealth Management said company earnings growth is the main driver, while Ben Carlson’s long-run data show US stocks rose 75% of years and 100% over 20-year periods.
He said negative headlines can coexist with rising markets because profitable public companies are expected to make more money, increasing their value.
Stockman cautioned valuations are high by historic standards and earnings outlooks could weaken, so markets can still fall despite their long-term upward trend.
With high valuations and geopolitical risks looming, how resilient is the market's long-term upward trend if external shocks persist?
Could the market's heavy reliance on AI and a few tech giants set the stage for an unexpected downturn despite strong earnings growth?