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This Might Just Be The Craziest Market Trend Correlation Ever

ByJesse Felder
Published 07/01/2020, 03:46 PM
Updated 07/09/2023, 06:31 AM

As I write this, the NASDAQ 100 Index is up 30% over the past year while continued jobless claims have soared to record highs as the result of a pandemic. It’s like nothing I’ve ever seen (or anyone else has ever seen, for that matter).

Typically, when recession hits and unemployment rises dramatically it’s not good for the stock market as both revenues and earnings take a hit. In the past, the trends in continued jobless claims and stocks had a negative correlation, meaning that when the former rose the latter fell.

Over the past few months, however, we have seen both rise strongly in tandem. And there may be no better representation of the massive gulf between the stock market and the economy right now.

NASDAQ 100 vs Continuing Claims

 

Latest comments

This is political....the dems are all for closing companies and states to keep employment down....hence most people think bad economy, bad leader. However, the Republican administration has set up such a hot, growing economy...not even a hyperbolized virus can't slow down that freight train. Why should the economy tank? A few more dips between now and the election, though....just to keep things fun.
Yes Walter. Hundreds of people are closing down their companies and kissing away their livelihoods because they dislike trump. Make sense.... I mean, let the kids starve as long as it sends the right political message
Already knew this for past 2 months
The stock market will come down very soon and corelate with the economy. Interest rates are lowest in 5,000 years and jucing up the everything bubble.
great old analysis
Zombi market
I understand we all are going bonkers looking at the stock market only going up, despite the bad news.  But no, that chart doesn't sound plausible :)
I see 2 different parameters on the chart and they are on a different scale. He is just highlighting the fact that there is not a good correlation between jobless claims and SP500. But, IMHO, there is the correlation, it's just masked a bit by the reassurances provided during lockdown. But in few months we should get alignment as some fog will start to disappear
apples and oranges
hahaahaha. no body knows about the apples and oranges hahahahahah
everything in front of every body but no body want to judge ... actually market goes to down it goes to up ward ...
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