The price of a stock is whatever someone will pay for it. The stock indices certainly have no obligation to reflect the current or future conditions of the over

The price of a stock is whatever someone will pay for it. The stock indices certainly have no obligation to reflect the current or future conditions of the overall economy. Some points to consider: 1. Stock prices follow trends. Increasing stock prices make stocks more attractive. These are the foundations of financial bubbles. History repeats itself. 2. Most of the valuation of an index like the S&P 500 is derived from a few stocks. 17.5% of the S&P 500 is the valuation of FAAAM.[0] Take a look at other members of the top 30 like Proctor & Gamble, Johnson and Johnson, Visa, Mastercard. The S&P 500 is mainly composed of companies essential to the daily functioning of the average American's life. 3. The stock market is essentially an unknowable process. Even the most profitable trading firms making billions of dollars a year make countless unprofitable trades each day and will go for years without turning a profit. [0] https://www.cnbc.com/2020/01/28/sp-500-dominated-by-apple-microsoft-alphabet-amazon-facebook.html https://www.cnbc.com/2020/01/28/sp-500-dominated-by-apple-mi...