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by Godel_unicode 1254 days ago
So far, in this one specific downturn, sure. There is however a strong historical correlation between market downturns and widespread unemployment.
1 comments

That’s not responsive to what I said. It’s a snappy one liner though, so I guess cool?
https://seekingalpha.com/article/4170913-unemployment-rate-a...

> An inverse relationship between level of unemployment and forward stock market returns. In the current quintile (2.5% to 4.4% unemployment), the average S&P 500 return over the following year is 5.6% versus and average of 12.7% in all periods. The best returns historically have come after periods of high unemployment

That’s forward stock market returns. AKA,__after__ everyone has been fired.

You need to look at what happens to stock prices during the recession/firing.

Again, cool, also unresponsive to the what I wrote.
You wrote

> So far, in this one specific downturn, sure. There is however a strong historical correlation between market downturns and widespread unemployment.

Statistics show just the opposite

Of course they don’t, that’s not what your articles say. Did you read them? They, respectively, say that the market is forward-looking and that major gains are made after downturns.

It can simultaneously be true that major gains are made after downturns and that there has historically been a strong correlation between downturns and unemployment.