How can the market set records when the economy tanked 30%. Unemployment jumped 30 million .... I know I’m not an investment wiz but it just doesn’t make sense.
1. NASDAQ is not the entire market. It is mostly younger, faster paced companies, most of which are in technology these days.
2. The stock market is forward looking.
3. Unemployment is not nearly as bad as it was even 2 months ago and is expected to be back under 5% by the election.
4. I know the employment status of about 35-40 people in our small little rural town. At the worst of it, about 5 were unemployed. All of those have found new jobs and are doing well right now.
Lots of cause for optimism.
Because the economy is now growing at a very fast clip of anneetimated 12.4%, and job creation for May/June(7.5 million new jobs created in just 2 months) were the fastest in history, with even more great figures expected from now to the end of the year. Plus company earnings from the big tech companies which were great in Q1 are expected to be very good in Q2 as well.
The stock indexes like the Nasdaq are weighted heavily towards the big tech firms with huge market caps like Microsoft, Apple, Google and Amazon. Trump calls them the MAGA firms.
Microsoft Apple and Amazon are now at or close to $1.6 Trillion in market cap each.