Anonymous
Anonymous asked in Business & FinanceInvesting · 4 weeks ago

why are stock markets still going up worldwide, when it is obvious that the covid19 virus is increasing, not decreasing?

12 Answers

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  • kswck2
    Lv 7
    4 weeks ago
    Favorite Answer

    It amazes me how many people claim to know about the economy when they have no clue what drives the market. Stocks go up and down based on Speculation and Earnings. Even when Earnings are down, speculation can cause stocks to rise. And vice versa. The Fed pumping a couple hundred million into the economy has no appreciable effect other than the short term-the economy is was too large. 

    Just today for example: Microsoft, Goldman Sachs, Netflix and Apple are rallying-those companies are large enough to send the market higher since they represent such a large portion of the economy. Were JUST those 4 down, it would take the broader market down with them. 

    Even if the Fed dumped one Billion into the economy-Apple is a Trillion dollar company and has more pull if you will. 

  • Anonymous
    4 weeks ago

    misplaced confidence..................

  • It's possible this the beginning of "stagflation", where the economy is stagnant and inflation sets in.  In that case, the stock market may go up, but not as fast as inflation, so that, corrected for inflation, you're losing value even as the market hits new highs.  It also means you can't make money by shorting or buying puts, and if you stay in cash you're losing value by the inflation rate.

  • Steve
    Lv 6
    4 weeks ago

    Even though small fish like me can participate in the stock market, it is a rich persons game. Typically rich people have continued to be rich and even richer during this virus time. Of course theres been help from the government as well. Youd think that this thing would doom everything, but it has not. It had the month of March that was virus swayed, but otherwise the market has looked fine.

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  • Anonymous
    4 weeks ago

    Because online sales are increasing. The stock market is not a good judge of our economy. Small businesses are not allowed to operate, but the transnational scumbags are. It's literally a monopoly.

  • 4 weeks ago

    A $500 billion stimulus bailout plus the US Fed buying up trillions in corporate bonds.

    That is why it is being artificially inflated

  • Anonymous
    4 weeks ago

    A worst case scenario is already priced in so when it turns out to be not that bad stocks will go up. 

  • Anonymous
    4 weeks ago

    because that means more TRILLIONS of dollars in free  "Stimulus relief money" !

  • Anonymous
    4 weeks ago

    The stock markets know that COVID-19 will eventually go away.

  • Anonymous
    4 weeks ago

    Trump has a magic wand.

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