Image Credit: Alex Nabaum
By Jason Zweig | June 5, 2020 10:00 am ET
The gap between Wall Street and Main Street has never seemed wider, but much of it is an illusion.
Since it bottomed on March 23, the S&P 500 has shot up almost 40% — the highest return over so short a period since 1933, according to S&P Dow Jones Indices. For the year-to-date, the S&P 500 is down less than 3%, counting dividends. Meanwhile, 108,000 Americans have died in a pandemic, 21 million are out of work and the country is seething with civil unrest.
This disconnect isn’t as extreme as it seems. Beneath the surface, much of the stock market is suffering, too. Most stocks are down this year, many by 20% or more. A few fortunate winners have generated big gains, fueling the misperception that losses have been minimal. The result is a market that isnât as irrationally exuberant as it might appear…
To read the rest of the column:
For further reading:
Benjamin Graham, The Intelligent Investor
Jason Zweig,The Devil’s Financial Dictionary
Jason Zweig, Your Money and Your Brain
Jason Zweig, The Little Book of Safe Money
Articles and other resources: