Market ≠ Economy ... Economy ≠ Market

I agree with your title, the Market is most definitely not the economy.
Other than a small note near the end of the linked article, there is really not much about the title.

On the bright side, it is nice to see Exxon being dropped from the Dow.

 

it means a lot to people looking forward to retirement

 

I think the older you get the more the Stock Market looks like a Casino where there are small winners and losers but the Casino which controls things is always the big winner.

 

nice market today buy!!!

 

I suspect part of the explanation has to do with the long trend, over my lifetime, away from defined-benefit retirement plans and toward defined-contribution plans, IRAs, 401(k)s, and the like. In the former picture, market investing decisions were being made mainly by professional money managers, people who had probably studied finance and economics, and whose clients were large organizations that knew what to watch for and would hold them accountable.

In the new picture, pretty much everybody starts a job and gets pointed at the market and told "go make that work out for your retirement, good luck". Few have studied econ or finance, and few have really saved enough that the long-term historical expectation of seven percent compound growth will be enough to keep them warm and fed. So, many are desperate to believe in market miracles, secrets of doing better than average, and rosy snake oil about the economy.

When those are enough of the people moving enough of the money that's being invested, it becomes possible for snake oil to move the market.

 

buy! buy now! bye bye now

 

i lost my shorts the last two days. luckily, i had put on clean underwear

 

that is a very interesting strategy, thank you!

 

The market goes up and the market goes down. There are boom and bust cycles. Tis ever thus. For every Tesla there is a GE.

I never understood how, with so many out of work and the dole slackening, there could be a surge of buying enough to support the recent market rise. I was beginning to think I might have been wrong to have gone conservative.

And then I think of all those still employed desperate for 401k returns. Where else can they put their money? And what other option does their investment vehicle offer them that has kept up with inflation over the long term? So they gamble.

You'd have thought that the magic vaccine would have encouraged people. And then they might have thought of the reality that it will take a long time to figure out if it works and to persuade enough people to get it to allow a true return to normal. And still longer to generate the jobs needed for a full recovery.

I haven't made a real move in the last year. Of course I did buy more of what I have with dividend money. I'm gonna stay that way and see how things turn out.

 

market timing is a fools errand. you're either in or you're out. i'm thinking one more round of stimulus, then the crash, sometime after the second wave and re closings. the goverment can't stimulate forever. job losses will be horrific.
on the plus side, i'm usually wrong.

 

Time in the market beats trying to time the market

 

let's not, it's over, thankfully