NEW YORK ( TheStreet) -- With the Dow Jones Industrial Average setting new records, it is important to recognize current stock prices are hardly extraordinary. Adjusted for inflation, stocks are still well below their January 2000 peak and may have a long way yet to run. Much stronger economic growth is needed to drive profits higher and sustain a bull market.Stock prices are helped by the Federal Reserve's bond buying and thumb on interest rates, and by cash rich companies aggressively buying back stocks and boosting dividends. Simply, U.S. CEOs are flush with cash but don't have enough opportunities to invest in organic growth in a slow growing U.S. economy.
Morici: Stronger Growth Needed to Sustain Bull Market
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.