Why is the stock market rallying when the economy is so bad?

Re:Why is the stock market rallying when the economy is so bad? by bo1024 on Sunday May 10, 2020 @06:05PM (#23136711)

Why? A lot of the value of a stock is ability to resell at a high price later. If everyone (including U.S. Fed and gov) agrees to continue to push prices high for the forseeable future, then it seems like prices can lose connection to e.g. ownership in a company.

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Re:Why is the stock market rallying when the economy is so bad? by empath75 on Sunday May 10, 2020 @06:06PM (#23136726)

That’s the definition of a bubble.

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Re:Why is the stock market rallying when the economy is so bad? by enraged_camel on Sunday May 10, 2020 @06:54PM (#23137079)

Yeah, it made me laugh that the OP stated it in such a matter-of-fact fashion, as if it’s normal or good.

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Re:Why is the stock market rallying when the economy is so bad? by bo1024 on Sunday May 10, 2020 @09:41PM (#23138089)

If you're talking about me, I don't think it's normal or good! But I do think it's a matter of fact.

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Re:Why is the stock market rallying when the economy is so bad? by bo1024 on Sunday May 10, 2020 @09:40PM (#23138086)

I agree, or pretty close. But it's not axiomatic that bubbles always pop (at least on the time span one expects).

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Re:Why is the stock market rallying when the economy is so bad? by chii on Monday May 11, 2020 @02:50AM (#23139510)

> But it's not axiomatic that bubbles always pop

You can only call it a bubble once it pops. So therefore, it is axiomatic. This stock "bubble" might not pop, and hence, it might not be a bubble.

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Re:Why is the stock market rallying when the economy is so bad? by bo1024 on Tuesday May 12, 2020 @02:47PM (#23158008)

Your definition of bubble and the one I was replying to are fundamentally incompatible - I don’t really care which term one uses though

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