Why are stock prices still so high?

That is the topic of my latest Free Press column, here is one excerpt, with the general theme that plenty is going well in the global economy:

A second important fact is that American presidents, whether Democrat or Republican, usually have very little influence on the economy. That is a hard truth for people to hear, since partisan sentiments often run strong, especially when it comes to President Trump. Yet the research literature is clear that most business cycles are not caused by presidents.

As for the current cycle, the core reality is that our economy continues to hum along. Yes, gas prices above $4 a gallon cause dismayed news stories and consumer worry. But energy prices have less influence on the overall economic picture than they once did. The chances of a recession have been falling, and a recent jobs report showed strong progress in hiring.

Of course the Trump administration will take credit for such developments, but mostly they are due to underlying structural factors.

And this:

During the current war, many parts of the global economy have shown more resilience and fortitude than might have been expected. Stocks in South Korea at first plummeted 20 percent, due largely to its dependence on Middle Eastern oil. Today, the Korean stock market, pushed along by the chip-making achievement of Samsung and memory maker SK Hynix, is reaching new highs.

…In previous times, sharp oil price hikes often brought catastrophe to the economies of Latin America. These days Latin American government bonds have held up well and are even considered a safe haven.

Recommended.