The third is that Americans are richer but are not investing in the stock market.
According to the Federal Reserve, American household wealth is at a record high. But the percentage of Americans invested in the stock market is at its lowest level since 1998. There is still a great deal of wealth in America to be invested in the stock market. The price-to-earnings ratio for the S&P 500 is not in bubble territory, so valuations are tempting.
The fourth is that central bankers led by the Federal Reserve are still favoring investors over savers.
On Nov. 4, 2010, then-Federal Reserve Chairman Ben Bernanke spelled this out in an op-ed for The Washington Post, ""What the Fed did and why: Supporting the recovery and sustaining price stability" in which he declared the stock market would be the tool to dig the economy out of The Great Recession. His words: "And higher stock prices will boost consumer wealth and help increase confidence, which can also spur spending. Increased spending will lead to higher incomes and profits that, in a virtuous circle, will further support economic expansion."
Nothing has changed since then as the stock market is still favored by the policies of global central bankers through quantitative easing, buying bonds to keep interest rates low.
Add to that trillions more in consumer spending around the world coupled with greater contributions to gross domestic product from those moving to cities and corporate earnings should improve. That should lure more Americans back to the stock market, which will keep the bull galloping!
At the time of publication, Yates had no positions in stocks mentioned.
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This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.