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This can be explained by market consolidation. GDP and market returns are not supposed to be perfectly correlated.
by friedman23 7y ago
This can be explained by market consolidation. GDP and market returns are not supposed to be perfectly correlated.
- asdfadsfgfdda 7y agoI think it's better explained by interest rates dropping over 2019. There are now more savers with fewer opportunities to make a return on their capital. So even with constant corporate earnings, there are more savers trying to buy a share of those earnings. Basically, the opposite of this explanation: https://www.thebalance.com/why-do-asset-prices-fall-when-interest-rates-increase-357150 https://www.thebalance.com/why-do-asset-prices-fall-when-int...