Stock market after years of soaring returns to Earth

However, the downtrend has also driven down stock prices of companies that represent innovation and the future. Amazon is down more than 30% since the beginning of the year, and Alphabet, Google’s parent company, is down about 20% as investors rethink the true value of the company.

Virtually no stock is immune to losses. The market decline is “depressing as it goes on,” Hill said.

No one understands the emotional symbolism of markets better than Trump.

“The reason our stock market has succeeded is because of me.” President Trump in November 2017 — One of many statements he publicly pressured to brag about the stock price rise or lower interest rates further to boost the economy.

In the early days of the pandemic, in April 2020, shops, offices and churches close, children confined at home try remote schools and morgues run out of space for virus victims. President Trump on Twitter The US recorded “the biggest stock market rise since 1974.”

Although the majority of Americans have invested some money in the stock market, it’s still a rich man’s game. According to an analysis by Edward Wolff, a professor of economics at New York University, the top 5% of the wealthiest Americans own 72% of all stocks.

However, the symbolic value of the stock market is important. “There’s only one story that makes the news every night,” said Richard Sylla, professor emeritus of economics at New York University’s Stern School of Business.

Is the market rising or falling? Are we winning today, this week, this year, this presidential election?

The University of Michigan’s consumer sentiment index fell more than expected on Friday. Some economists attribute the decline to some impact on the stock market’s losses. Ian Shepherdson, chief U.S. economist at Pantheon Macroeconomics, said the index is now 13 points lower than the low it had when the coronavirus first broke out. Shepardson wrote in his research notes that this deep pessimism “suggests that people have short memories.”

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