Why stock market’s rising when economy’s doing tough

Why stock market’s rising when economy’s doing tough

Since end of March, the Australian stock market has risen more than 20% and the US market has risen more 30%. But we’re still in the midst of this Covid-19 pandemic and the economy is doing so tough.

Shouldn’t the stock market be taking cues from the economy or does it know something that we don’t?

In this video, I discuss THREE reasons that are driving this interesting dynamics that’s happening right now.

Why markets don’t seem to care if the economy stinks

Mostly our experience of the economy relates to things we can see. We notice closed shops and cafes, deserted airports and empty hotels. But other less visible sectors are doing OK—like miners, healthcare, and online payments firms. Tech giants like Google and Apple have boomed. Barry Ritholtz explains in this article 

I hope this gives you a better understanding the market dynamics right now and If you have questions or concerns, let’s have a chat. That’s what I’m here for!