Why is the stock market doing well right now?
In the past few weeks, more than 26 million Americans have filed unemployment claims, retail sales plummeted and small businesses have struggled to acquire loans. Despite this, the stock market has looked mostly positive after sharp declines in March.
Marketplace host Kai Ryssdal spoke with Anat Admati, professor of finance at Stanford University Graduate School of Business, about the disconnect between the markets and the real economy.
“The stock market is high because it doesn’t really represent the entire economy,” Admati said. “Small businesses have to survive somehow, and it’s becoming incredibly difficult for them.”
She said investors are likely focusing more on bailouts for big corporations than struggling small businesses and workers.
Click the audio player above to hear the interview.
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