Stock Prices and Future Returns

The media were filled with euphoric accounts about the run-up in the stock market in 2013. This was certainly good news for the people who own lots of stock, less so for everyone else. (The generational warriors who yap about government debt hurting our kids would also be yelling about the stock market run-up transferring resources from young to old, if they were honest.)

Anyhow, it would be reasonable if this reporting included some discussion of the implications of higher stock prices for...