facebookThere seems to be a desynchronization between the economy and the stock market. US posted it's worst unemployment rate in years and yet stock rallied and index have their best week then. What do you think? - Seedly
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Wong Sheng Ye

Posted on 13 May 2020

There seems to be a desynchronization between the economy and the stock market. US posted it's worst unemployment rate in years and yet stock rallied and index have their best week then. What do you think?

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When you had a Fed with a strong mandate to buy up ETFs, corporate bonds using money that is created out of thin air at no cost to them, it would def help to create inflationary pressures to support asset prices FOR NOW.

But if companies continue to burn cash...and some face bankruptcy, you cant throw money to a dead entity & breath them back to life to the same state.

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