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> I don't get why the stock market rallied on a strong jobs report. The stock market is entirely divorced from the economy. All that matters is investor sentim
by kibwen 4y ago
> I don't get why the stock market rallied on a strong jobs report.
The stock market is entirely divorced from the economy. All that matters is investor sentiment, which, in some cases, might correlate with the economy, but for the most part it's somewhere between a horoscope and a casino. Don't assume rationality from the stock market.
- abirch 4y agoAnd don't overweight news headlines with the stock market, the people who are writing them are frequently paid by the click.
- tengbretson 4y agoThat doesn't sufficiently explain what's going on though. Sure, at this point its best to not think of stock performance as a proxy for economic health at large, but institutional investors still finance their trips to the casino on credit, so its still reasonable to think that a marker for higher interest rates should bring down investor sentiment.
- osigurdson 4y agoIn the short term it is a slot machine, in the long run it is a weighing machine. I think Buffett said that.