Why are the stock valuations so detached from reality?

Question

As the title says, why do you think the stock market is (or is hovering) around the all time high levels when the underlying economic indicators are clearly showing the future isn't that bright after all?I know some will say "it's a bubble", that's fine but why is the bubble growing and what do you think is different from the dot com bubble for example.

gostsamo · Accepted Answer

As far as I understand it, at least two factors:
1. Valuation is based on hopes for future returns, not on current situation.
2. Central banks pumped trillions of dollars, euros, and so on for the last decade. The way they did it was beneficial to investors and less to consumers. So, given endless amount of money and without much of a growth, investors decided to put them wherever possible with shares being an obvious choice.

nikivi · Answer

I think it's just the best way to put 'money to use' other than investing in yourself or your own ideas. Where else would you invest the money?https://www.reddit.com/r/investing/comments/iz5lvq/the_stock...

tboyd47 · Answer

Free money.