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

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Opinion | The 'rising stocks are ignoring the terrible economy' crowd is missing the clear reasons for the market's surge. By Neil Dutta of RenMacLLC.

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.

 

आपकी टिप्पणी के लिए धन्यवाद। आपकी टिप्पणी समीक्षा के बाद प्रकाशित की जाएगी।

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

RenMacLLC Really.

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Inside the $415,000-a-month Hamptons cottage where Rihanna vacationed this summer - Business InsiderBusiness Insider is a fast-growing business site with deep financial, media, tech, and other industry verticals. Launched in 2007, the site is now the largest business news site on the web. Is inside the house made with gold? Snore.
स्रोत: BusinessInsider - 🏆 729. / 51 और पढो »

Facebook could be the next $1 trillion company. Here's howAs Facebook hits record highs, one market watcher suggests it could the next stock to join the $1 trillion market cap club.
स्रोत: CNBC - 🏆 12. / 72 और पढो »

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
स्रोत: MarketWatch - 🏆 3. / 97 और पढो »

Retail investors with 'money to play with' help Malaysian stocks recoup nearly all losses this yearGreater participation by Malaysian retail investors has hit a record high this year, while foreign funds retreated from several stock markets around Asia. Obiden*shit Obama*shit Obama*shit Obiden*shit Obiden*shit Obama*shit Obama*shit Obiden*shit Obiden*shit Obama*shit Obama*shit Obiden*shit Obiden*shit Obama*shit Obama*shit Obiden*shit
स्रोत: CNBC - 🏆 12. / 72 और पढो »