Valuation-Informed Indexing #560: High Stock Prices Are Sticky

I’ve posted Entry #560 to my weekly Valuation-Informed Indexing column at the Value Walk site. It’s called High Stock Prices Are Sticky.

Juicy Excerpt: This resistance to stock price drops is a fundamental force in the market. Without it, the market could test various price points and settle on the one that makes the most sense given the economic realities. But investors always favor high prices. It takes more in the way of bad economic news to pull prices down than it takes in the way of good economic news to pull prices up.