Financial asset prices are closely linked to consumer spending. The behavior of asset prices in the US is studied, with a focus on stock returns and interest rates. The research shows that the market price of risk is high, changes over time, and is connected to the state of the economy. Models with features like habit-formation, different types of investors, and irrational expectations are discussed. The findings suggest that understanding asset market behavior requires considering these factors. Data from other countries are also examined to see if similar patterns exist beyond the US. Bond returns are also taken into account in the analysis.