Fantasyland Economics

Stocks cannot rise unless "inflation" goes into financial assets and not commodities.

Dividends could grow more like 10 to 15 percent with inflation of 5 to 7 percent, but then the S&P 500 yield will probably also be moving towards 5 percent as it did in the 1970s. If I put in 15 percent annualized dividend growth, year 5 at a 5-percent yield results in SPX at 2300, an inflation-adjusted level of 1800.