Normally stock markets tell us a lot about the economy, but there might be structural reasons why they’re divorced from reality this time, says an ...
Compare this reversal of fortune to the S&P 500’s trajectory after the Global Financial Crisis of 2007 to 2008. Then it took about five years for the index to claw back its losses.
Investors could be bidding up stock prices because they have to put their money somewhere, and stocks are the least worst bet. Like all tradeable items, their prices rise and fall, and the pandemic has been driving them down. In April the World Bank’s Commodity Markets Outlook warned the risks to forecasts were “large in both directions”.What about bonds – the ultrasafe investment offered by governments?
Since the market peaked in late February they have become net buyers of stocks, while professional institutional investors have become net sellers.Researchers Carole Comerton-Forde and Zhou Zhong suggest this might be due to people having fewer other spending opportunities, and more time on their hands – the so-called boredom markets hypothesis.
It’s likely some of that money has flowed thorough to people who have used it to play the stock market.In the past the stock markets have fallen just before unemployment rose, heralding what was to come.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Apple on cusp of US$2 trillion milestone, defying Covid-19 pandemicWASHINGTON (AFP) - Apple is on the verge of becoming the first US$2 trillion (S$2.7 trillion) American company following a gravity-defying surge that has highlighted the value of its iPhone ecosystem during the global pandemic.. Read more at straitstimes.com.
Read more »
Commentary: From COVID-19 to parenthood, judging each other is back with a vengeanceJust as new parents respond viscerally to others behaving differently, so we are equally agitated by those taking a different approach to the ...
Read more »
Why SIA will need to downsize to survive Covid-19Singapore Airlines (SIA) recently reported a S$1.123 billion net loss in the quarter that ended in June but this was not unexpected given how the Covid-19 crisis has virtually crippled the aviation industry.
Read more »
COVID-19 pandemic behaviour: Why some people don't play by the rulesLockdowns and social distancing measures introduced around the world to try and curb the COVID-19 pandemic are reshaping lives, legislating ...
Read more »
REVIEW: Greenland is a disaster movie that hits close to homeGreenland is relatable amidst the chaos that COVID-19 has thrown society into.
Read more »
US companies should consider slavery reparations, Vista Equity CEO saysThe COVID-19 pandemic has hit Black Americans especially hard after decades of social and economic injustices, but it also presents an opportunity ...
Read more »