Are we being held hostage to the stock market?

Washington

THE stock market is going gangbusters, but whether this reflects the economy's underlying strength or runaway speculation is a question that stumps many experts. Hence, the need for this column: a primer on the red-hot stock market. Will it sustain the economy or ultimately kill it?

The boom is undeniable. In 12 out of the first 15 trading days of 2018, stocks reached record highs, with an overall gain of 6 per cent, worth about US$1.9 trillion, according to Wilshire Associates. Since US President Donald Trump's election on Nov 8, 2016, stocks are up one-third, or US$8.4 trillion.