The Stock Market Is Not the Economy 0
The Bonddad Blog has an informative article explaining why the stock market can do well while the overall economy is hurting.
The short version is that the stocks of certain large tech companies have boomed because of their usefulness in a work-and-study-from-home-during-the-pandemic environment. In contrast, the portions of the economy that affect and are peopled by everyday persons (that is, not what is sometimes referred to as the “investor class”) are suffering, along with the persons who live in and depend on them.
The long version is at the link.
Afterthought:
I need a new tube for one of my bicycle tires, so, late last week, I headed out to my local bike shop, where I’ve been trading since I moved to these parts, only to find that it was gone. The two stores on either side of it in the little shopping center were also closed.
Persons who can afford boats to parade in are not worrying about catching up with last month’s rent because the restaurant or store they used to work in has closed.
