[ryansmccoy]

Basically, you can think of the stock market (price) driven by two components: 1) an aggregate of all company profits in the stock market and 2) the cost of borrowing capital (discount rate).

1) Corporate Profits - From what I recall, corporate profits have been flat to down over recent quarters.

2) Discount Rate - The cost of borrowing capital has been falling as governments make access to capital easier for businesses. This has a huge effect on the valuation of the stock market compared to the impact of the profits. This is why the stock market continues to go up. The issue is that if you were to make access to capital harder, thus increasing the discount rate, companies in theory wouldn't be able to borrow as much, and therefore grow as much. Thus, the market would in theory go down, probably alot.