Joe Granville is smiling today.
Despite this costing me money, Trump is correct. With interest rates close to 0%, people (like me) have been willing to take the risk of stocks to chase a 2% dividend yield, risking a 40% loss in value. If medium term Treasuries returned to paying 4%, staying in stocks would be only for appreciation, not dividend yield. But the outflow of cash would crush any hope of stocks sustaining an upward momentum. Stock prices have very little to do with the health of underlying businesses.