[zacherates]

1. Stock markets are forward looking. Prices reflect expectations about the company going far into the future, not just right now. So yeah, this year and next year are going to be bad, but we expect that five years from now things will be back to normal or better and prices reflect that.

2. Companies in the S&P 500 (which is what people often mean when they talk about Wall Street/the market/etc) are by definition are big and have easy access to the capital markets. Consequently, they are the best positioned to whether the storm and seize the opportunities as they come. When things start recovering companies with money/easy access to the bond market are going to be the ones who can open new locations and capitalize on pent up demand.

3. There are a bunch of big companies that have actually done well for the last six months. The obvious ones are companies like Amazon, Netflix and Zoom, but for instance Target and Walmart have benefited from being allowed to stay open because they sell essentials while also selling everything else so they were often the only option other than Amazon.

4. When people talk about the S&P 500 recovering unbelievably fast, they often mean vs. the lows in March. Those lows were not reflective of the reality of what was happening (definitionally: nobody knew the reality of what was happening, lack of testing, etc.), but there was some concern that the actual apocalypse might have occurred... and everyday as merely bad news poured in that actually restored confidence because the news was not apocalyptic. So, the prices rose.

5. There really are a bunch of bored people buying stocks on their phone because they can't bet on sports anymore [1]. It's not clear how big an effect this is, but there really does seem to be extra retail demand for stocks.

[1] https://www.bloomberg.com/news/audio/2020-07-09/inside-the-m...