Why does the stock market keep going up when the economy feels so bad? It’s the question we probably get the most and, quite frankly, it’s not a bad one. The primary reason equities seem invincible is because of the dramatic increase in the money supply over the past four decades. That explains the supply side of the equation at least. But a lot had to happen behind the scenes to allow for the money supply to be absorbed into the financial system and ultimately benefit a fraction of the population.
The stock market lives off the levels of exploitation of those who actually do the work. When the economy is bad, it might still support strong levels of exploitation, just because workers are more vulnerable when the economy is bad.