4 Reasons There's A Disconnect Between The Red Hot Stock Market And Ice Cold Economy

SPY) is up 50.9%, including one of its best four-month stretches in history.

LPL Financial analyst Jeffrey Buchbinder said Monday there are several perfectly reasonable explanations for why the stock market is performing so well while the economy is performing so poorly.” data-reactid=”20″>For some investors, the disconnect between the stock market and the real economy may seem random or even nefarious. Wall Street critics often claim the stock market is “rigged” or the result of pure manipulation by investment banks and hedge funds. However, LPL Financial analyst Jeffrey Buchbinder said Monday there are several perfectly reasonable explanations for why the stock market is performing so well while the economy is performing so poorly.

“With the S&P 500 already having eclipsed the high end of our year-end fair-value target of 3,300, and given a number of risks in addition to COVID-19, such as the upcoming US presidential election and escalating US-China tensions, the upside for stocks over the rest of the year may be limited. But we would say the same thing about bonds, which leads us to maintain our tactical overweight equities allocation,” Buchbinder said.

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