If US unemployment rate remains high and property market is hovering near the bottom, why does the stock market keep going up and stay at a high level?
Well, it has a lot to do with the huge money supply provided by the Federal Reserve.
There aren't many good long term investment opportunities around.
So a lot of the money printed by the Fed has been pouring into and flooded the liquid stock market which allows one to take money in and out fast without getting stuck in it.
That's why the market just wouldn't come down even though the economy is weak and will be weak in the near future.
As a short term trader, one follows the market trend without paying much attention to the economy.
But as a medium and long term investor, one need to be very cautious.