As headwinds persist in the global economy, weak corporate earnings and countries over the world are seeking loose monetary policies to keep inflation up, investors wonder if that is the end of the rise of the market. This is given the assumption that dividend stock prices have already been pushed up by yield-driven investors. However, Wharton School’s finance professor, Jeremy Siegel and strategist from Fundstrat Global advisors, Tom Lee (formerly Chief Strategist with JP Morgan) explained that that is not the case. In fact, they have three reasons why the stock market will go higher instead of down.

1. The effects of rising fed interest rate

Source: US Fed Funds Rate, Trading Economics

The main concern of investors is that in a low-rate world, yield-driven investors have pushed the value of high-dividend stocks too high. If there is an increase in risk-free rates, the valuation of these stocks will be ......