The record close that the S&P 500 hit last Tuesday, its first since February, has reignited the longstanding debate over whether high valuations are setting stocks up for a fall. The index is now up more than 50% from its low this spring, erasing all the losses it suffered during the coronavirus pandemic. Despite a bruising recession, many investors appear to be betting the worst of the economic pain is past and that corporate earnings, the most reliable driver of stock prices, will begin climbing again next year.

Source: Wall Street Journal August 23, 2020 17:02 UTC