The Nasdaq these days is flirting with new record highs. This is pretty amazing and even more so if you juxtapose that against some other recent records highs, namely the unemployment figures, the continuing weekly jobless numbers on excess of 1M for the 15th consecutive week.
Perhaps the stock investors in companies like Apple and Tesla - who themselves are jostling to seek out their own record highs – view unemployment as good for these stocks. They may see unemployed people rushing out to buy new iphones and teslas. Or maybe, they are pricing in the future growth when all of the unemployed get re-employed and rush out to buy iphones and teslas. Or perhaps its based on stimulus – if so many people are unemployed -it will behoove the government to rush in more stimulus.
Read more: http://macrotomi.com/article/how-high-will-the-nasdaq-blow