Thread by @SRuhle

THREAD:
The stock market is up AGAIN, while 30+ million Americans are on unemployment & small businesses are closing everyday leaving more people baffled by the disconnect between the real economy & the stock market.

Remember: When we talk about “the stock market,” we are looking at INDEXES (S&P, DOW & NASDAQ Composite) They do not represent ALL public companies.

INDEXES have market cap weighting - meaning certain companies represent a bigger chunk of the overall index.

The top 10 companies in the S&P 500 are doing well & they represent 30% of the entire index!

The industries that have been hit the hardest (airlines, cruise, hotels) have tiny market caps, $10-20B compared to $MSFT, $AMZN, $APPL which are all over $1T.... so EACH of those are the equivalent of 50-100 airlines.

The companies in the INDEXES are absolute behemoths...companies like Walmart, Johnson & Johnson, Berkshire Hathaway.
They are behemoths & the Johnson & Johnson CEO said it himself...they are built for times like this.

The reason 30+ million Americans are on unemployment is because we shut the economy off.
It’s unfortunate, but perfectly logical to see so many Americans out of work.
If you run a hotel, restaurant or movie theater, you are making no/very little money. You don’t need employees.

Some demand will resume as we re-open.
But that is an entirely different picture than “the markets”.