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CNBC/Michael Santoli/4-25-2020
“Why isn’t the stock market much lower? This question is occurring to plenty of observers right now, given the apparent contrast between economic realities and equity performance.”
USAGOLD note: A good many are asking this same question, even investors who concentrate their portfolios in common stock. Of course, the reason is a widespread belief that massive money creation will inflate a new Wall Street bubble combined with a sense that things will be better once the pandemic hopefully passes. But is such thinking rational at a time when the entire global economy is flipping over to a new abnormal? Some see the recent gains as a bear market rally.
Related: Investors baffled by soaring stocks in ‘monster’ depression / Financial Times / Robin Wigglesworth / 4-24-2020