The Stock Market is Ignoring The Economy

My son wants a cell phone. What 7th grader doesn’t?

He might just be the last one in his grade to get one, but his mom and I are steadfast on waiting until he’s in the 8th grade. 

To him, none of this makes sense. “Everyone” has one. It feels unfair to him. My ex-wife and I might not agree on everything (obviously…we got a divorce,) but we agree that phones in the hands of kids will turn out to be the cigarettes of the 2020s. 

So, while he waits in disbelief that his divorced parents agree on this (we actually agree on almost everything when it comes to our kids,) most investors are having the same experience with the stock market. I hear most of them saying, “one of this makes sense…”

It doesn’t make sense… unless you understand why the stock market can ignore what is happening in the economy. The key word there is “can.” 

Once you understand why the stock market doesn’t care [right now] about the economy, you’ll be able to understand more about what is going on. 

Because, you know, this is the only market we have. 

There are three reasons why the stock market can completely ignore the economy, the unemployment numbers, and COVID-19 deaths.

0 Comments