Tuesday, March 5, 2013

The stock market and the economy

The article's title is, "Record High Close for Dow, Spurred by Fed and Profits". The opening line is:
Despite everything, the stock market is back at a record high.
Despite everything. That's all you need to know.

The stock market, even taking into account that the Dow is not exactly representative of the market as a whole, has rebounded. Why haven't the rest of us felt the improvement? Well, the answer seems inescapably simple: the market is no longer connected to our collective economic well-being, if it ever was.

If you are still laboring under the mistaken impression that the stock market has diddly to do with your economic fate, this should open your eyes.

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