Why have stocks gone up?

TLDW: lower the risk free rate of return (yield on bonds) and it makes traditionally higher risk assets MORE attractive (kinda).

Growth stocks are the ones investors flock to with lower rates, since cash flows are discounted LESS (lower discount rate in the discounted cash flow model).

That’s why we have such a small amount of stocks driving the indices (SP500, Nasdaq) higher.

Macrodesiac.com