What The Hell Is The Stock Market Thinking?
Answer: it’s not thinking. It’s being propelled higher by algorithms using funny money from the fed. Every important economic measure other than the fed’s balance sheet and corporate profits is diverging negatively from the Dow Jones Industrial Average, but the stock market is all about profits and fed policy so who cares if things like industrial production and GDP growth are showing signs of a top, right?
It’s no wonder FRED has included so many historical charts that end years ago in its database. I think they decided that since most of the current economic data is irrelevant they might as well have some fun and make sure we all have access to data series like the wholesale price of cotton yarn in the US or pig iron from Dusseldorf, Germany. Can you blame them?
The stock market is a psychological operation designed to trick us into feeling wealthy even though most of us, including the federal government, are broke. How’s that working out for you?