Is the stock market disconnected from the economy? Perhaps, but less so lately. Also, looking under the hood of performance trends over the past year reveals a more nuanced relationship. Before getting to the many unique characteristics of the COVID-19 cycle, an important reminder to investors is that stocks tend to lead the economy.
Is the Stock Market Disconnected From the Economy?
Is the stock market disconnected from the economy? Perhaps, but less so lately. Also, looking under the hood of performance trends over the past year reveals a more nuanced relationship. Before getting to the many unique characteristics of the COVID-19 cycle, an important reminder to investors is that stocks tend to lead the economy.