The core of the argument in last week’s discussion on Why Markets Don’t Seem to Care If the Economy Stinks surprised a few people.
It is yet another reminder that the world is very complex and we don’t know what we don’t know. At times, it seems that Nobody knows anything.
Which is why I am so delighted to see this chart. It shows exactly what we were discussing — that much of the companies in the S&P500 have almost no impact on its price action.
Source: Visual Capitalist
Previously:
Why Markets Don’t Seem to Care If the Economy Stink (August 7, 2020)
FAANMG Stock Prices Reflect Global, Not US Recovery (July 17, 2020)
