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26 million jobless but markets booming

Posted: Tue Apr 28, 2020 9:47 am
by Violet Middleton
Stock markets up almost 40% from bottom and tens of millions have lost jobs with no hope of things back on track soon? What is going on?! Georgia, which "reopened" first, is only allowing restaurants and other stores to be at 25% of capacity. Look at a normal restaurant you like and eat at. Then picture it with only 1/4th of the tables filled. You'd think "Wow, it's really slow tonight." Now imagine that that is their maximum ALL the time for the foreseeable future, even on the weekends. Now ask yourself if that is going to be enough to pay their bills.
The market is ignoring what's happened in other countries that have reopened in that their economies are weak. Look at China. For some reason investors think that as soon as we reopen economic activity will return to 2019 levels. That couldn't be further from the truth.

Re: 26 million jobless but markets booming

Posted: Tue Apr 28, 2020 9:52 am
by Corsica lyons
The market is already back to where it was 3 months before the coronavirus. I don't think any news can be better than what the market is already pricing in. But I don't think the market really cares about news at all at this point. Irrational exuberance ends when people run out of money, not because of fundamentals.