"Despite oil blockades and a threat to a whole civilization, investors have shrugged and kept buying. The stock market looks completely out of touch with reality."
"If investors have learned to ignore President Trump's chaos, it's not because they're oblivious to reality, but because this chaos has hardly dented corporate profits."
"Consider the so-called Magnificent Seven, the major tech companies with some of the most valuable stocks in the world, many of which reported record quarterly earnings last week."
"Close to 80 percent of S&P 500 companies that have reported earnings so far have beaten expectations. The average profit margin for S&P 500 companies is now at its highest point in 15 years."
The military stalemate between the U.S. and Iran is disrupting global oil flow, causing rising gas prices and inflation above 3 percent. Despite this, the S&P 500 has increased by 29 percent over the past year, reaching an all-time high. Corporate profits are driving this stock market rise, with major tech companies reporting record earnings. Approximately 80 percent of S&P 500 companies have exceeded profit expectations, leading to the highest average profit margins in 15 years, indicating a disconnect between market performance and consumer sentiment.
Read at The Atlantic
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