Stock markets high, but nobody seems to think that it reflects the economy
November 17, 2016
It continues to look likely that Obama's presidential term will finish with a stock market at record highs, and a stock market return from the start to the finish of the election that rivals -- of even exceeds -- that of Bill Clinton. Although in retrospect investors are likely to look at the Obama presidency as a good time, both candidates in the election largely ignored the stock market and either spoke (or implied) that the economy under Obama had languished. The real question is whether the discussion signals a long term departure among candidates to use the stock market as a proxy for the strength of the economy, or whether references to a sluggish economy were intended to refer to the distribution of wealth (e.g., income equality) and not the aggregation of total wealth.