The more important part of the story is that the stock market is supposed to represent the discounted value of future profits. If profits are expected to be higher because there is widespread optimism about more rapid growth, then this is genuinely good news, but if expected profits rise simply because investors anticipate further redistribution from wages to profits, then the vast majority of the public has little to celebrate. Even in the era of 401(k)s, three quarters of the public holds less than $25,000 of stock (including mutual funds in retirement accounts). So most people have little reaason to celebrate a redistributin from wages to profits. Since I have not heard many (any?) forecasters upping their growth projections, I assume that the stock rally is based on expectations of further redistribution, that is insofar as it has any basis in fundamentals at all.
