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The Stock Market is Disconnected From Reality
This is what we’ve been hearing for the last few months.
And, it isn’t true.
Because it isn’t.
No matter how much we want to believe that the stock market is some thing that exists in a black box that discredits reality, our opinions don’t really matter.
The stock market is a market, like any other market you’ve experienced.
As much as we want to believe the cover on The Economist, where it headlines a widening gap between “Main Street and Wall Street” as
a dangerous gap.
It isn’t true. The stock market isn’t disconnected — in fact, it’s the most connected thing we have to reality. Stock markets don’t follow pieces of isolated media, whatever is buzzing on your social media feed, any kind of breaking news story on your local news.
It’s a place where entities and people can come together to price things. And they do that with the infinite help of projections, reprojections, models, remodels, etc.
Today, in the morning, the jobs report came out for May. It turns out that we added 2.5 million jobs, marking a huge surprise. Many people were thinking that unemployment was going to continue to rise.
