The Edge Singapore published a special feature written by CMC Markets on 5 June 2020, titled "When fundamentals fail". It aptly sums up the equity-economic divide that we are currently seeing in the markets. You can read the article [here]. The world is still nursing from job losses and business collapses due to the artificially imposed economic lockdowns. Yet, if you have only a window to the world through stock market lenses, you can hardly be faulted to be cheery. It looks to be all sunshine after the torrent of rain in March.

Image by Mammiya from Pixabay

On Friday, the U.S. stock markets jumped, simply because the unemployment rate was much lower than expected (13.3 per cent versus the estimated 19 per cent). The disparity was so significant, it prompted news outlets to investigate why the economists had it so wrong. (You can check out one such article by The Washington Post [here].)...