33 million (and counting) file for unemployment in the US. But the stock market is up … Can someone explain this to me? Is it just hopeful investing before another crash? I know the vast majority of the US bailout money went to the rich, so what happens when no one has money to buy things.
The stock market is largely driven by the largest companies. Places like apple, Amazon, google etc aren’t really effected by this to the same degree as everyone else
The market is up from late March when it completely tanked, but still down from where it was in January and February. A bit of a natural bounce back from the initial panic now that businesses are slowly starting to reopen and people with expendable income are taking advantage of low stock prices.
Because the stock market is not an accurate representation of a companies performance. If it was, then shares of a company like Uber which has lost billions and never had a profit would not ever be worth anything.
The stock market is about bets. People are betting that companies eventually rebound.