US real economy


The Gap Between The US Stock Market And The Real Economy Has Increased Sharply Due To Covid19

Last week there were sharp falls in the stock markets (-4%/-5% in Europe, -6%/-7% in the US), with the biggest drops since March. In a context of a significant disconnection between prices and fundamentals after the sharp rises from the March lows, which were discounting an unlikely “V” recovery, these downward moves seem logical. Also the upward excesses, which until last week were the protagonists. Our correspondent in Washington, Pablo Pardo, analyses this stock market and economic chaos.