The Stock Market Is Ignoring the Economy

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The Dow had its best two-week performance since the 1930s, leaving investors with a perplexing reality: soaring share prices and a floundering economy

The Dow Jones Industrial Average staged its best two-week performance since the 1930s, a dramatic rebound that has left many investors with a confounding reality: soaring share prices and a floundering economy.

The explosive rally is a sign that many are positioning for the U.S. to make a speedy recovery when the coronavirus crisis eases. Investors have been encouraged in recent days by signs that several states will move to resume business, along with hopes that a viable treatment for Covid-19 could be near.

 

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Remember Italy, Spain debt crisis 2010-2011, and its effect to the stock market worldwide, now imagine the whole world trade is impacted, bad debts and so forth, collapsing sectors like tourism, cruise ships, airlines.. and Dow and S&P is having a rally!! :) lets see how long..

US gone far away from free economy and democracy?its controlled by plutucrat/billionaire new aristocracy?It join hand with globally detested OPEC+cartels to fix production,markets&prices of energy,proxy wars,also digital monopoly abuse in the forms of sanctions.what form of govt?

You said it - let's recall the 1930s

For decades, everyone knows that the stock markets are not an economic indicator. It is just a playground for the rich and virtually a casino. Stop treating the stock markets with such importance to the real economy because it is not.

ChartShark28 Just keep buying the big companies that looks like going to bankrupt, because the fed will always bail them out... totally communism mode now

Yes , true

The stock market expected the worst in March. It now bounced back simply because the “worst” is in rear view mirror.

There’s a Democrat soon to be President. Someone’s going to clean this mess up.

When the going gets tough.

It boiled down to, the market is bullish on Trump.

Fantasyland.

FOMO syndrome

Market manipulation. Why don't you examine that and report out on it. And, put it on your page without a paywall.

Part dead cat bounce, part cult denying reality. Reality is going to end in the end.

It’s no longer a stock market. Might as well call it a futures market. But in reality it’s all a pyramid scheme. The Canadian market, the TSX, is heavily influenced by oil. But despite oil off nearly 10% today the market was up 500 points. What’s happening right now is concerning

Maybe they looked at the CDC death tolls for ppl under 54 and realized it’s under 1200 ppl. It’s bad but for older Americans....

It’s not perplexing at all. The “Dow” is not the economy, it reflects the price of assets held in that “average”. That average is pricing in a gradual return to work. It’s looks forward not back.

This means absolutely nothing.

But wait isn’t that because the market has been having its worse month ever It’s still in the tank & this is a fools rally...

JCOviedo6

You act as if rising stock prices are something organic like a weed in a garden or a flower. In reality, people, sitting at desks in NYC bid up the prices. If you are perplexed, go ask them why.

an all-time high would not surprise me at all.

If the Fed is right, then there will be a V-shaped recovery. If the Fed is wrong, there will be a depression.

Are you ignorant or something ? We in lockdown. Just stop. Ffs

stock market pricing no longer has any real, durable connection with financial results, strategic position, etc. it’s all about gut feeling and quick technical trades.

Because the FED is buying it up

How can one trust any institution any more?

The Stock market works on tomorrow. It sees a president working like hell to make it a good one. Pelosi eating desert and Andrew waiting for a vaccine before proclaiming, I did it all self. are not helping.

Again. POTUS pressed federalreserve to fuel Political stockmarkets fireworks disconnect from a collapsing US economy have shortest legs.

The market is not a reflection of the economy. Everyone (but T's supporters) know that.

Stock market is an irrelevant measure of an economy. Why are you “experts” looking surprised? You are just Oz making people wear emerald glasses to see the colours you want them to.

bubble

IMAGINE THAT? MARKET MANIPULATION? BRACE YOURSELF FOR THE TRUE MARKET CRASH KABOOM!

Economic metrics are backward looking, stock markets are forward looking. Market expects an accelerated V-shaped recovery, boosted by the Fed/fiscal stimulus MOAB dropped into the economy.

Wake up and come out of your basements

Means it’s bullshit and will likely fall even lower than before.

Skyrocketing unemployment. Record national debt. Thousands of people dying every day. NO END IN SIGHT! Dow increasing......pyramid scheme

'soaring.' uh huh.

The stock market is kidnapped . RIP free markets ,

A fool and his money are soon parted

Stock market can be faked, economy cant

We'll don't believe the hype around covid 19.

因為兩周前的基礎數值太差了……

Investors who short take profits, too.

Reality that are government and the FED are corrupt because the don't want the retirement fund Ponzi to stop. If scared citizens stop contributions, it might cost the 1% from profits. Most will never see that money again at least not with any real value.

Dead cat bounce

Won't last. It's a scam to pull more money before another crash

Ah yes 1930s known for its stability in growth and employment. Nothing to worry about it's not like the Fed has been injecting cash into the economy for months prior to this.

Meanwhile, over 20 million people lost their jobs. Clearly, this entire system is a bullshit excuse to steal money

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