Opinion: The stock market’s rallying while the economy’s tanking — it all makes perfect sense

Opinion: The stock market’s rallying while the economy’s tanking — it all makes perfect sense

AFP/Getty Images The stock market in April had its best month since 1987. And the economy had one of its worst months ever. How is that possible? Is it a conspiracy by the Federal Reserve? Are stock traders insane? Both, perhaps? So what do we make of all this? […]

First, the stock market is forward-looking. So while we see everything for what it is, the stock market is looking for what it might become. This ebbs and flows across time. The market’s fluctuations are a series of guesses about future outcomes. Warren Buffett always describes this as “Mr. Market,” a man (yes, a man) who is bipolar, constantly screaming out his opinions in a manic way. Sometimes right, sometimes wrong, but never in doubt.

Click here to view original web page at www.marketwatch.com

Post your Comments...