The stock market reflects what people think will happen in the future. It pretty much has always worked that way. Also, with interest rates at essentially zero, the Fed has made the stock market the place to go, although the broader bond market is up almost 8% YTD. I would avoid using words like "everyone", "absolutely no sense", and "most of those" since you don't know what "everyone" is thinking. So, tell us how you have shorted the market in anticipation of the big correction. Yes, there will be a correction and "everyone" knows that because the market is cyclical.
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Originally Posted by tvbound
The current stock markets have no correlation to the actual economy right now. While only a little over 1/2 of us own stocks, in any form, right now everyone is punch-drunk on greed and thinking they are smart enough that they will have a chair when reality hits and the music stops. Covid has crippled the actual economy and those who don't own stocks know it, but most of those who do own or trade stocks refuse to believe it. So many jobs have either been permanently eliminated, or it will take a long time for them to come back, that stocks make absolutely no sense right now. When the bloodbath starts - it will be really ugly.
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