Why do stocks go up so much? Some financial economists think they are converging on a tentative answer.
Why stocks go up is one of the fundamental questions of finance. If it seems like a silly question, itâ??s only because the amazing performance of stocks relative to safe bonds -- known as the equity premium -- has been a fundamental, unchanging fact throughout our lifetimes. The Financial Times sums it up, with the simple declaration: â??In the long term, nothing beats stocks.â?
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