Last week, the S&P500 hit all-time highs and is now up over 50% from March lows. With the unemployment rate still at a staggering 10.2% and countless small businesses shutting down over the country, an obvious question to ponder is why there is such a disconnect between the economy and the stock market, and whether we’re in the midst of some kind of bubble (brought about by Robinhood day traders of course…).
this is an awesome, not pretentious analysis :) thanks for writing it up
I read Nathan Tankus's piece today on separating risk-free rates, hurdle rates, and discount rates: https://nathantankus.substack.com/p/low-interest-rates-dont-drive-market
Do you think your analysis is in direct opposition to his? Or do they coexist?