How can the stock market be doing so well when the economy is doing so badly? That’s because the economy reflects the real financial health of the country, while the stock market is just a bookmaker where people bet on companies instead of horses. The true economic data points such as the gross domestic product (GDP), employment figures, business failures and personal bankruptcies don’t directly affect the stock market. Small businesses, not listed on the stock market, are in a much more precarious position than the larger businesses who are. With a surplus of cash chasing a limited number of shares, new stock market highs are inevitable.

Source: thestar December 05, 2020 05:13 UTC