Stock of the Day
Out of context: Reply #170
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The Mystery of High Stock Prices
From the Department of Curiosities: On Tuesday, as the number of new coronavirus cases continued to spike to record levels, the stock market closed out its strongest quarter in more than two decades.
That was just one stop for the equity markets on a spring roller coaster ride, three months that saw the fastest 30 percent decline in stock prices in history, followed by the fastest 50-day increase on record.
This year’s volatility may be extreme, but it’s only the latest of many seeming disconnects between stocks and the economy. In March 2009, for example, while reported monthly job losses were topping 700,000, share prices abruptly ended their 17-month decline and began a recovery that essentially lasted until the virus arrived.
- people need to stop connecting the stock market with the economy. different beastsGnash