the

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

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