by Justin Spittler
Stocks are rallying for a bizarre reason.
Two weeks ago, the S&P 500 set a new all-time high. It was its tenth new high since July 11.
What’s more, stocks are rallying despite nearly impossible odds:
1. The global economy is stalling. The U.S., Europe, Japan, and China are all growing at their slowest rates in decades.
2. Stocks are expensive. According to the CAPE valuation ratio, U.S. stocks are 62% more expensive than their historic average. CAPE gives a long-term view of the S&P 500.