Fastest crash and fastest recovery. Markets disconnected from the economy. What's happening?

Came across this interesting graphic from Bloomberg. The pace of crash and the snapback recovery have been phenomenal.

India though is still down 20% for the year. But Nasdaq is up 10% YTD :scream: I’ve seen 10s of articles on the divergence between the real economy and the stock markets. But what most people don’t realize is that GDP and markets aren’t correlated at all. Markets are always discounting the news and are at all times either too optimistic and overly pessimistic. But they never move in line with the economic realities.

But if you look underneath the hood of S&P 500 and Nasdaq the breadth is quite narrow.

The recovery had been entirely based on the moves of FANG stocks

Another interesting data point I came across

If you look at the Indian sectoral performance, the bloodbath becomes quite evident. We still have a long way to fo for the recover unlike the US markets which have been pulled by the

What do you think? Where are the markets headed?

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Don’t ask why. The How is more important than Why!

Irrespective of any market condition, you can always find securities that are trading for less than they are worth and buy them and sit on them for a long period. Although, market bloodbath helps quite a bit but it’s not rational to think that way because none can predict the market. Not a model that can you replicate all the time.

Focus on the cash flows & the balance sheet. No such thing as P&L Statement exists.

Avoid all the Warren Buffett quotes because he is never a minority shareholder in any business. He buys thems out and churns them out.

You’re sure to do relatively fine in life.

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