SmartStops Comments:   This article from shows that with data going back to 1947, the stock market and the economy will deviate from each other, for a short period of time. The question is do stocks move back down to where the economy is or does the economy move to the leading indicator stocks. Consistently it is the former, stocks will fall back to the wider economy. Cheerleaders for the stock market will say that “this time it is different” but history and the data show this has never been the case. This is easiest to see with the attached graph. Though there is significant deviation stocks do return, this is great knowledge for traders and can be a good indication to what will happen after significant deviations.    Entire article at: .

S&P500 vs. Real Corporoate Profits 2020

S&P 500 vs. Real Corporoate Profits 2020

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