Here’s How to Square a Rising Stock Market With the Dire Economy

  • 📰 NYMag
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

ประเทศไทย ข่าว ข่าว

ประเทศไทย ข่าวล่าสุด,ประเทศไทย หัวข้อข่าว

Here's how investors can have a positive economic outlook in the face of a pandemic that has shut down so much of the economy. jbarro writes

Selling like hotcakes. Photo: Eugene Garcia/EPA-EFE/Shutterstok In his newsletter, Bloomberg’s Joe Weisenthal notes that this recession is weird in certain ways. It’s not just the surprisingly buoyant stock market, with the S&P 500 recovering more than half its losses from the trough in March and the Nasdaq Composite actually up for the year. He points out, for example, that the Chainsmokers are raising a venture-capital fund.

But a recession can also be caused by a supply shock, in which goods or services become much more expensive or less available. The classic example is the oil crisis of the 1970s. Normally, you would expect prices to go up due to a supply shock and down due to a demand shock, and since the Consumer Price Index fell sharply in April, you might assume this recession is primarily driven by a demand shock.

Of course, there are reasons to think there would be a demand shock right now. Tens of millions of people have been put out of work. Even people who are working have good reasons to worry about their future income — whether they might lose their jobs in the future or whether their businesses might fail. So you would expect people to be less inclined to spend, reducing aggregate demand. On the other hand, the government has reacted forcefully to offset the demand shock with deficit spending.

 

ขอบคุณสำหรับความคิดเห็นของคุณ ความคิดเห็นของคุณจะถูกเผยแพร่หลังจากได้รับการตรวจสอบแล้ว
เราได้สรุปข่าวนี้มาให้อ่านอย่างรวดเร็ว หากสนใจข่าว สามารถอ่านฉบับเต็มได้ที่นี่ อ่านเพิ่มเติม:

 /  🏆 111. in TH

ประเทศไทย ข่าวล่าสุด, ประเทศไทย หัวข้อข่าว

Similar News:คุณยังสามารถอ่านข่าวที่คล้ายกันนี้ซึ่งเรารวบรวมจากแหล่งข่าวอื่น ๆ ได้

Stock market live updates: Futures flat after big Monday rally, Home Depot falls, Walmart risesA conversation about the latest market-moving news, including earnings from Walmart and Home Depot.
แหล่ง: CNBC - 🏆 12. / 72 อ่านเพิ่มเติม »

Here's what happened to the stock market on MondayHope for a potential coronavirus vaccine and positive comments from Federal Reserve Chairman Jerome Powell sent stocks flying on Monday. America took the redpill Stonks skyrocket because they are manipulating this shit beyond reason... MARKET RALLY!!!
แหล่ง: CNBC - 🏆 12. / 72 อ่านเพิ่มเติม »

Here's what happened to the stock market on TuesdayWall Street took a breather on Tuesday following a massive rally in the previous session. It went down SPLits Here’s what happened: The fake news about Moderna having a vaccine that worked got revealed as a hoax and the market fell two hundred points to the nine hundred point pump yesterday! The market is moving without any direction right now!
แหล่ง: CNBC - 🏆 12. / 72 อ่านเพิ่มเติม »

Citigroup sets new market forecast with a 7% return over the next 12 monthsCitigroup's Tobias Levkovich is betting on solid stock-market gains over the next year as the economy heals from the coronavirus pandemic.
แหล่ง: CNBC - 🏆 12. / 72 อ่านเพิ่มเติม »

S&P Futures Rise; Global Stocks MixedU.S. stock futures rose, while international markets were mixed, as investors continued to weigh the prospects for economic recovery from the coronavirus pandemic. They don't look 6 feet apart.
แหล่ง: WSJ - 🏆 98. / 63 อ่านเพิ่มเติม »