An adage in investing and policymaking circles is the reminder that the markets are not the economy. While the former tracks profits and expectations, the latter busies itself with tangible stuff, from jobs and wages to GDP. Often the two can tell a similar story, but there are also times when they become disjointed, and economic fortunes get tied up with the whims of financial markets.
According to Mark Zandi, Moody’s Analytics’ prominent chief economist, we are now in one of those moments.
