The Stock Market Is Ignoring the Economy. Here's Why | WSJ

Stocks are booming while companies shed millions of workers from payrolls. WSJ explains why the stock market seems disconnected from economic reality in the U.S. Photo Illustration by Carlos Waters/WSJ

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#WSJ #Economy #Explainer

[TTTrouble]

Let me save you the 6 minute video.
The answer: The Federal Reserve

It's pulled out all the stops possible to stop the stock market from falling. One wonders why that matters more than main Street.

[beneathtotality]

The stock market is not the economy. The top 10% own 90% of ALL stocks!!!

[Linkous]

Why do people continue to believe that the stock market is a good indicator of how the average person is doing?

[doubleaa]

The fed job is to protect banks not taxpayers

[jessetorres]

I took a course at TCU that explained a key problem with the Stock Market. Basically, if you proportion America to just 100 people and placed them all in order from the richest to the poorest, only 7 of the bottom 50 have enough money to actively invest in the Stock Market. So when the Stock Market is good, only a handful out of the bottom half of the country benefit from it, but when it crashes, it also impacts them more because they don't have as much of a safety net especially compared to the top 10% of the country. Additionally, whenever the television media or politicians praise how well the Stock Market is doing, they ignore half of the picture of how it impacts our national economy. So, while the latest viral outbreak is impacting the Stock Market right now, for a lot of the poorest and working class Americans, all they'll see is the price of basic goods and medicines go up while also being worried about their healthcare coverage or lack thereof.

[robithevampire]

Stock market going up on a worse economy is like a concert's last performance, everyone's high on drugs, enjoying, happy and when the show ends everyone leaves.

[butterflyfarting]

The stock market is not a reflection of the economy. It is a list of the top preforming publicly traded companies.

[bigboss]

Why markets are ignoring the economy? Because the Fed be like: I got a whole lotta money and money printer goes This is just financial doping.

[adsoncastro]

That’s why people are investing in companies such as Apple, Amazon and Netflix because doesn’t matter how poor an American person is they will always carry the newest iPhone model, they will still buying junk from China on Amazon which is mostly machine automated distribution and of course they’re still watching their favourite series on Netflix!

[jamsbong]

Although this is a report that says the poor is being left out in USA, I would argue that this is the case everywhere around the world. This is not a USA only problem.

[katyungodly]

“They want to put street criminals in jail to make life safer for the business criminals. They're against street crime, providing that street isn't Wall Street.”
- George Carlin

[dustinho]

the reason the stock is up because of 3 trillion dollar bailout. more than 2008 financial.

[graceavery]

The rich stay rich by spending like the poor and investing without stopping then the poor stay poor by spending like the rich yet not investing like the rich

[homewall]

Love when government claims THEY created the jobs in a free market AFTER they tried to kill all small businesses with tyranny in the name of fear/safety.
Zero interest government loans -- not available to any citizen -- ensure inequality, reject equal protection under the law, and destroy any notion of wise investing, creating a bubble that is sure to create more problems and more government money handed to the rich.

[ayanverma]

This happens due to the fact that stock market doesn't represents every single business in a country

Genrally Informal Economy is not counted in stocks

[noname]

Can't wait for 30+ years of economic stagnation, the future is looking bright 😎

[tealion]

There’s no other place to put your money. Interest rates are negative after inflation.

[hillaryclinton]

To everyone out there Investing in it now will be the wisest thing to do especially with the current rise

[BoyBombay]

“A bull market is like sex. It feels best just before it ends.” – Barton Biggs. (Note: Warren Buffett, in his 2013 letter to Berkshire Hathaway shareholders, was quoting the late Barton Biggs.)
PS - Barton Biggs (November 26, 1932 – July 14, 2012) was a money manager said to be best known for accurately predicting the dot-com bubble in the late 1990s.

[vman]

Repeat it with me. THE STOCK MARKET IS NOT THE ECONOMY 👏🏽