As the S&P 500 pushes further into record territory, more than erasing its pandemic-induced plunge despite a double-digit unemployment rate and uncertainty over the path of the COVID-19 pandemic, the reminder that “stocks are not the economy” is in heavy rotation among investors and market pundits.“While literally true, this platitude has long been used to imply the market is divorced from the fundamentals or ignoring the economy altogether.
The S&P 500 SPX, +1.00% and the tech-heavy Nasdaq Composite Index COMP, +0.60% hit all-time highs on Monday. The S&P 500 reclaimed record territory last week, fully erasing the nearly 34% plunge that took it from its Feb. 19 finish to its March 23 low. The Nasdaq had long since returned to record territory and on Friday logged its 36th record close of 2020.
Stocks aren't the economy. The stock market is overvalued by at least 50%. Dow's real value is around 14K.
I'm not.
One economist? What the idiotic statement!. U.S. Nominal GDP: $21.44 trillion, the whole U.S shares market is $34 trillions.
Stocks only go up! DDTG
So we are to believe that the market is accurately predicting healthier, stronger growth than prior to covid? I’ve got my doubts.
But it's not the economy.. see stock market numbers while millions are out of work and struggling to keep roofs over their head and food on the table.
kairyssdal
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kairyssdal what do you think?
Total nonsense. The market has never been a growth momentum barometer.. this article is clearly pump propaganda
Maybe becuase about half of Americans don't own stocks?