In the book, you use the example of Exxon and its dividend growth rate. Even if Exxon's stock price doesn't rise, thanks to its dividend growth, Exxon is a safer, much more profitable investment than Treasury bonds. That's right, because you're just looking at the money that goes into your pocket over time in order to value that stock. The difference between a stock and a bond is that over time, a stock increases its profit and therefore increases the amount of money that flows to the people who own it. A bond doesn't do that.
Stocks are too good a deal based on the amount of risk that's really involved.
And more and more people are recognizing that. And understanding both of those is the key to understanding what stocks ought to be worth. You write that this rise in stock prices is a one-time event. We believe that stocks are headed, at least at current levels of profit, to 36,000 on the Dow. And when the Dow gets to 36,000, growth will level off.