Stock market record highs despite bad economy actually makes sense - Business Insider

recently proclaimed that "the economic/market disconnect grows ever more" on a day of better than expected US economic data no less!

. By contrast, the US economy has a lot of service sector activity that is not captured in the equity market. A trip to the barber or dry cleaner is not something that registers in equities, but these people to people services make up a large chunk of US gross domestic product. For starters, stocks tend to care less about whether the economy is "good" or "bad" in level terms, but do tend to care about where conditions are "better" or "worse." This is one reason why stocks, a growth momentum variable, tend to slump in recessions and rise early on in recoveries even when unemployment is still elevated.

Worried about people not making their rent? Well, residential REITS have seen share prices sink since March. Travel and tourism? It's not as if airlines, hotels and cruise lines are leading this stock market recovery.

RenMacLLC 'More recently, since the pandemic ended, ' You meant 'since the pandemic began,' I assume?

RenMacLLC Really.

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Stop saying ‘stocks are not the economy’A record-breaking stock market doesn't look quite so disconnected from a pandemic-ravaged economy when you look at the companies driving the rally, notes one... Maybe becuase about half of Americans don't own stocks? Total nonsense. The market has never been a growth momentum barometer.. this article is clearly pump propaganda
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