Current Events > Stock market is soaring while unemployment is at its highest point since WWII

(+) Yeah! (+)

What do you think this says?

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It means the stock market is not necessarily an accurate measure of how the economy is doing. The company I used to work for just laid off a bunch of people, but their stock went up after the earnings call on Thursday.

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Insider trading and /r/wallstreetbets

CableZL posted...

It means the stock market is not necessarily an accurate measure of how the economy is doing.

Plus larger companies are still doing international trading.

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80% of the country doesn't benefit from the stock market so this isn't going to help Trump when he eventually starts bragging about it.

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CableZL posted...

It means the stock market is not necessarily an accurate measure of how the economy is doing. The company I used to work for just laid off a bunch of people, but their stock went up after the earnings call on Thursday.

most of the time lay-offs will increase the stock price as you spend less on salaries. Now in real life this means that everything will take longer to make but most of the time shareholders have no idea of whats happening inside the company.

Stock market doesn't reflect the economy. It reflects large publicly traded corporations.
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The stock market reflects what investors think is going to happen in the near future. It's going up because people think we've turned a corner and things are going to get better now.

I think it's probably still early and another crash is coming, but even if they are right, it's going to take awhile for unemployment numbers to catch up.

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It's not only what's happening now but what will happen in 6 months, 1 year, 2 years etc

The stock market went down like a waterfall in February - then mid march we had the complete market shutdowns. It's a projection of what's coming in the future.

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Intro2Logic posted...

What do you think this says?

that the interests of the stock market and millionaires are actually in direct opposition to the interests of a national economy and the people that live in said countries.

It says people on gfaqs still dont understand the stock market

Central banks around the world have heavily distorted financial markets. This was true 10 years ago, but it's more blatant than ever right now.

When central banks create trillions of dollars (or yen, euros, etc.) and you wonder where the inflation is, look at financial asset prices.

Edit: I get that unemployment is backward looking and the stock market is forward looking, but the Nasdaq is up for the year. That's not because of fundamentals.

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I think this says buy some

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Also, interest rates are 0, close to 0 or even negative in most places now. So having your money sitting around in a bank savings account isn't the greatest idea.

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A lot of the losses are already baked in. The losses at the beginning were tremendous, and this is people thinking this isn't as bad as they thought it would be.

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Squall28 posted...

A lot of the losses are already baked in. The losses at the beginning were tremendous, and this is people thinking this isn't as bad as they thought it would be.

This so hard

Every time the market recovers a bit people act like we've reached some new peak

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lilORANG posted...

Stock market doesn't reflect the economy. It reflects large publicly traded corporations.

And it's questionable how accurately it reflects even those.

The market cap on some companies is ridiculous. If you actually owned all of it and tried to sell it all, you wouldn't get anywhere close to the market cap.

A lot of shit that happens when companies go public is day trading where they buy back their own stock for less than they sold it for.

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Tyranthraxus posted...

And it's questionable how accurately it reflects even those.

The market cap on some companies is ridiculous. If you actually owned all of it and tried to sell it all, you wouldn't get anywhere close to the market cap.

A lot of shit that happens when companies go public is day trading where they buy back their own stock for less than they sold it for.

That's fucked up, but that's also late stage capitalism for you.

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indica posted...

That's fucked up, but that's also late stage capitalism for you.

It's just an accepted fact of public share trading. It's the main reason companies keep needing more money is to keep buying and selling themselves.

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indica posted...

That's fucked up, but that's also late stage capitalism for you.

Why is that fucked up?

It is a transaction between two consenting parties.

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Gamerguymass posted...

80% of the country doesn't benefit from the stock market so this isn't going to help Trump when he eventually starts bragging about it.

Around 35% of the country contributes to a 401k.

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Intro2Logic posted...

What do you think this says?

The market anticipates a return to normalcy. This isn't some bourgeoisie conspiracy. Use your noggin.

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s0nicfan posted...

Around 35% of the country contributes to a 401k.

Most of those people probably are using safe / moderate options which are significant chunks of government bonds. I've picked the most risky option package available to me (without managing it myself) and it's still something like 20% bonds.

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no one who uses the term late stage capitalism seriously knows what they're talking about

Because places are starting to reopen, so Q2 GDP growth may not be as dire as expected.

Also there was an aggressive flood of capital through monetary and fiscal policy that should help to keep the economy somewhat OK while on life support during the pause.

And the report was actually better than forecast so that helps a bit.

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Tyranthraxus posted...

Most of those people probably are using safe / moderate options which are significant chunks of government bonds. I've picked the most risky option package available to me (without managing it myself) and it's still something like 20% bonds.

Sure, but a lot of people like to pretend that the stock market is this imaginary playground for the 1%, when in reality about a third of the country relies on it for retirement savings.

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Tyranthraxus posted...

Most of those people probably are using safe / moderate options which are significant chunks of government bonds. I've picked the most risky option package available to me (without managing it myself) and it's still something like 20% bonds.

Most retirement funds are heavily balanced towards equities until you get close to retirement

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Broseph_Stalin posted...

no one who uses the term late stage capitalism seriously knows what they're talking about

Kind of like you in the topic about rent control in NY?

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ScazarMeltex posted...

Kind of like you in the topic about rent control in NY?

???????

Broseph_Stalin posted...

no one who uses the term late stage capitalism seriously knows what they're talking about

Oh Bro Stalin, such an over-generalization is unequivocally false as are the vast majority of over-generalizations. I expected better from you, though I don't know why...

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Iunno, it was 25~% higher a couple months ago.

Stocks go up when people think the future is good and stocks go down when they think it'll be bad. It doesn't move because of what may or may not be actually going on

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