Market's disconnect
The word "disconnect" to describe the link between the market and the economy has been quite common nowadays. The stock market had ran in the opposite direction of the economy. It is an obvious conflict for any investor reading the current situation. On one hand, the world's greatest shutdown is still in progress. On the other hand, the market continues a vertical climb out of a hole it fell into. As most people believe, the market leads the economy. Meaning that if we translate the market action into a prediction of the future economy, we will be out of the woods within the next few months? Frankly, I am clueless. I'm not sure if anyone can answer this question confidently, given that there is no precedent of a virus like COVID-19 in the modern era. I always like to understand the market sentiment. Market sentiment is important because it gives us a perspective of the crowd's behavior, and how the crowd is moving is quite critical to investment decisions of succe...