How Can the Stock Market Rise So Quickly in This Economy?

As the economic and capital markets landscape continues to rapidly shift and evolve, the most common questions we receive from clients has changed in kind. In early March, our clients were looking for reassurance they were going to be OK. As the initial feelings of panic have subsided, we are frequently asked “how can the stock market be rising so quickly when the economic news seems so bad?” The simple answer is that markets are forward-looking, pricing in expectations. Our friends and partners at Dimensional Fund Advisors explained exactly how this works in a way only they can. Please follow the link below to learn how, at times, stocks and the economy diverge.

Read Under the Macroscope: When Stocks and the Economy Diverge.