Resistance to Buying Stocks Is Becoming Evermore Futile
Fund managers’ equity allocations are higher than they were during the dot-com boom, even as economic growth fades.
Buy anything you want, as long as it’s stocks.
Photographer: Justin Sullivan/Getty Images
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There’s no direct link in real time between the growth of the economy and the growth of the stock market. (There’s a very strong link over the fullness of time, but in the long run we’re all dead, as someone once said.) If you ever needed proof of this, it came Tuesday. The latest GDPNow index from the Atlanta Federal Reserve suggests that the U.S. economy is now growing at an annualized rate of barely 0.5%. The “reflation trade” and “post-pandemic boom” that we were all looking forward to have been deferred: