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The S&P 500 nears its all-time high. Here's why stock markets are defying economic reality

  • Written by James Doran, Associate professor/Deputy head of school, UNSW
The S&P 500 nears its all-time high. Here's why stock markets are defying economic reality

The stock market is not the economy.

This old and playful maxim is typically not true: often the stock market is a good proxy for the economy and a very good indication of what will happen to it.

But it aptly captures the current divergence between stock markets and the worst economic crisis in a century.

In the United States the NASDAQ (which...

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