The S&P 500 is broad base measurement of the US equity(share) market. It does make sense that the value of companies should rise as productivity rises. The correlation from early 70's to about 95 remains pretty consistent ... interesting that there was no wild sway even during the Volker years of high teens low 20% interest rates (early 80's).
Greenspan began his tenure in 87 ... In the 3rd year of Clinton's 1st term we see the deviations of today begin ... Clinton was loosening bank regulations and redefining the definition of unemployment.
It spiked back down for the dot com bubble to a normalish location, but Greenspan's low interest rate policy caused a quick return upwards before he handed the reigns over to the Bernank .... GFC took em down and insane monetary easing has taken them back ... Certainly is this is completely counter-intuitive to the 40000 Dow, however when you bring in the hyperinflation argument ... who knows what will occur ....
The gap between prices and productivity once again demonstrates
1) Yield chasing
2) The irrelevance of fundamentals
3) the raping of the little guy
4) An imminent risk of market crash, confidence loss and complete destabilization, Ho mcuh longer and further the can can be kicked is any body's guess.
https://www.ainsliebullion.com.au/gold-silver-bullion-news/when-bad-news-becomes-bad-news-again/tabid/88/a/1319/default.aspx?mc_cid=a52bcb1926&mc_eid=ff2e773055
orgy