Summary
The Morningstar US Market Index is up 11.4% for the year and nearly 29% over the past 12 months. The S&P 500 Index and the Dow Jones Industrial Average have also notched records. The biggest tailwind for stocks has been an unexpectedly healthy economy.
Investors seem to see the Fed as a friend, not a foe. The target range for the federal-funds rate is 5.25%-5.50%. Investors may not all agree about whether that’s sufficiently restrictive to control inflation. The same factors driving markets higher could send stocks falling.
