A year like no other for most of us around the world will be remembered in the US and international financial markets for five remarkable features:
The great disconnect between Wall Street and Main Street
Apart from a few weeks culminating in the 2020 market lows of March 23, stocks managed to shrug off what has been a drastic collapse in global economic activity with significant immediate and longer-term consequences.
This incredible decoupling has shown no sign of slowing even as markets trade at historically elevated valuation levels. If anything, an already exceptional disconnect has become larger at the end of the year. Read more…..
Chart of the Day
Ray Dalio, the billionaire founder of investment management firm Bridgewater Associates, talks with Bloomberg’s Erik Schatzker on the “Bloomberg Invest Talks” webcast about the long-term economic implications of the coronavirus crisis and what can be expected moving forward.