We’ve said it before, The stock market is not the economy.
Usually, this simply means that the fluctuations in the markets may have little to no real bearing on the underlying reality, we may think of an ace, making up the economy. Or that there are many important structural, brazil, that make the markets’ outlook is different from how ordinary citizens view the country”s overall health foundation.
But now, those usual bromides risk for wildly understating the disconnect. In the time-of-COVID-19-the stock market couldn’t be more divorced from the United States’ broader economic situation. Although the S&P 500 index tumbled sharply in March, the coronavirus shut down large swaths of the economy, it had made back almost all of its losses by the first week of June — before dipping again and then quickly rebounding after four weeks.
Even beyond the markets, there has been some data to suggest that the worst fears about the economy in late March and April were too pessimistic. Take it (the jobs report, for instance, which showed a surprising decline in the unemployment even after accounting it is a classification problem with laid-off workers.) But the overall state of unemployment is still to remove the bad by historical standards, which lists numerous important economic indicators that are almost uniformly down to a significant degree from last summer: