Why is the stock market rallying
Why is the stock market rallying in a recession?
stock futures still under pressure here
with about ten minutes to go before the
opening bell and despite what futures
are doing today many are concerned that
generally there has been this big
disconnect between Wall Street and Main
Street I want to welcome back our
editor-in-chief Andy serwer because Andy
I know you recently spoke with the
co-founder and co-executive chairman of
the Carlyle Group David Rubenstein about
this very disconnect what did he have to
say it really is one of the great
mysteries of 2020 isn't it Alexis that
the economy is under so much pressure
and yet the stock market continues to go
up day after day and I figured David
Rubenstein would be a pretty good person
to ask about that here's what he had to
say the stock market seems to be
disconnected from the economy the
economy is one where it's lower growth
than we had before it is coming out of a
recession it is one where that we have
depending on how you measure 20 to 30
million people unemployed and in that
kind of situation
you shouldn't expect the stock market to
be running up to these hell with these
highs but I think many people are
thinking we will come out and also the
stock market is a forward indicator and
it's indicating maybe a year from now
that some of these numbers will be
justified but right now I do think that
there's gonna be a lot of gyrations
between now and a year from now and I
think it's a fool's errand to go into
the market now thinking that it's a
bottom and you're gonna go up from here
I think there's going to be a lot of ups
and downs a fool's errand you guys and
you know it's so tempting as an investor
when you see the market going up and
stocks going up and you're so tempted to
chase it maybe not such a great idea
Rubinstein is that thing in any what did
he have to say at all about Kovach 19
and the rate of deaths and new cases
that we're seeing how concerned is he
yeah well he's concerned and you know he
expressed some dismay as to the federal
government's response although he did
point out you know no one's ever been
here before so it's tough to point
fingers although he acknowledged that
some other countries had done a better
job than we had and I think the biggest
question that Rubinstein pointed out and
others have
well as just the unknowns here in that
we thought we had this problem solved
you know three weeks ago and now
obviously we don't and where do we go
from here that is the big question and
so until you have the medical model
figured out you really can't figure out
the financial and economic model Andy
did he say anything about the state of
the private equity industry it strikes
me this could be an industry targeted if
if there is a change in the white house
yeah I asked him about that a fair
amount Brian and said you know you guys
have always been a bad guy but now in
fact maybe more so in that Hertz was a
company that they did deals with Carlyle
Group also some of the private equity
backed companies getting PPP loans as
well so and he said well that may not be
the right thing but then he did the
usual pointing out that the investors in
private equity were pension funds and
unions and policemen and firemen and
teachers an argument that I think Brian
saw is that you have heard before part
of before yes we both have alright Andy
thanks so much and you can catch the
full interview with David Rubenstein on
influencers with Andy serwer that's
happening tonight beginning at 5:00 p.m.
Eastern here on Yahoo Finance comm or
you can catch it on any one of your
favorite favorite streaming devices say
that five times you're fast it'll be
there you can check it out
hey investors sack Guzman here are you
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