As I and others often say, the stock market is not the economy. It never was. But it may be even less the economy than it used to be, according to a new paper by Schlingemann and Stulz 1/ https://www.nber.org/papers/w27942?utm_campaign=ntwh&utm_medium=email&utm_source=ntwg22

They show that there's a declining correlation between a firm's share of employment and its share of stock market value 2/

Case in point: in the 1950s the biggest market cap was either AT&T or GM, which were also the top 2 employers. In 2019 it was Apple, which was only the #40 employer. 3/

It made some sense to say that what was good for America was good for General Motors and vice versa. But what's good for America and what's good for Apple have almost nothing to do with each other. 4/