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Stocks don't mirror the general state of the economy, at all, stocks are just another market. Look at how stocks performed during 2020-2021, where economies wer
by piva00 2y ago
Stocks don't mirror the general state of the economy, at all, stocks are just another market. Look at how stocks performed during 2020-2021, where economies were struggling because people couldn't work (or in many places not even leave their houses/blocks for months at a time), the stock market follows feeling and confidence and not the economy necessarily.
Can it be a proxy to study the underlying economies? Probably, but it's never the economy.