The risks of a Bernie presidency and economic impact of COVID-19 are underpriced

[waynec]

The economy is closely connected to the stock market, in normal times. The market is over confident at this time because many people believe that the governments of the world will print money and spend our way out of recession/depression. There are only so many times that the government can send out stimulus checks. The unemployment stats for May stands at 25.1 million unemployed for the USA and 2 million unemployed for Canada. The June stats are due out for tomorrow, I expect that it will be much worse than the figures for last month. You will see how it will effect the stock markets tomorrow and into next week.

The confidence in the economy will diminish as the bad news come rolling in.

interesting perspective. this articles explains some of the disconnect in the stock market. I have sold all me stocks in my trading accounts, but have kept all my registered accounts intact, so have enjoyed the 30-40 percent recent bull. Ill continue to sit on the sidelines with cash.

https://www.cnn.com/2020/06/03/investing/premarket-stocks-trading/index.html

 

[glamphotographer]

The economy is closely connected to the stock market, in normal times. The market is over confident at this time because many people believe that the governments of the world will print money and spend our way out of recession/depression. There are only so many times that the government can send out stimulus checks. The unemployment stats for May stands at 25.1 million unemployed for the USA and 2 million unemployed for Canada. The June stats are due out for tomorrow, I expect that it will be much worse than the figures for last month. You will see how it will effect the stock markets tomorrow and into next week.

The confidence in the economy will diminish as the bad news come rolling in.

Well Canada May job numbers are in 290,000 Canadians went back to work. US unemployment numbers went down. All markets still up today.

 

[glamphotographer]

Again the reason why stock market is rising while the economy is down.