The president and his supporters are ignoring what former Federal Reserve Chair Janet L. Yellen recently forcefully explained: “The stock market isn’t the economy. The economy is production and jobs, and there are shortfalls in virtually every sector ….” Yet how has the stock market remained so resilient in the face of such a severe economic shock? When we compare the stock market to jobs data, the numbers are sobering, indeed. If the stock market doesn’t reflect the health of our economy, what does it reflect? And it’s not just that indexes such as the S&P 500 — representing 500 of the largest — are skewed toward bigness.

Source: Washington Post September 10, 2020 02:59 UTC