Based on the amount of sideline money that is being claimed we are heading for a dividend driven market. If treasuries are paying 3% dividend yield has to be either 3.5% or dividend growth must be equivalent.
Perhaps just for a time. The concern is not the economy but about the Fed raising interest rates and cutting quantitative easing. Higher economic growth, higher wages and nearly full employment raises concerns about inflation, and the Fed's actions are intended to ease those concerns. Once investors are confident the Fed will approach this issue delicately the market will resume an upward trend because the economy is doing so well.
