Especially as of late – it was going “bad” with the economy and interest rates were rising. How come we see so many stocks with an “All time high”? I’m not looking for a psychological explanation, but literally: where do the coins come from to purchase?
In: Economics
Also, the stock market doesn’t reflect the entire economy. As a hypothetical, publically traded companies could be making more money by increasing their market share over smaller private or mom and pop companies. Stock prices go up for those companies, but the bad fortune of the private companies isn’t reflected in that stock index.
Simple answer: the fortunes of the largest publicly traded companies can rise even if other aspects of the economy are not doing as well.
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