What Are Stocks Worth?

A currency trader walks by the screens showing the Korea Composite Stock Price Index (KOSPI) (L), and the foreign exchange rate between U.S. dollar and South Korean won at a foreign exchange dealing room in Seoul, South Korea, on Jan. 21, 2022. Lee Jin-man/AP Photo

Commentary 

Economists often say stocks are worth whatever people will pay for them. While true, this information isn’t very helpful. We already know what people will pay for stocks. Just look up current prices. What people really want to know is where stock prices are heading.