Why stocks keep going up even as the economy softens

[dutch777]

5. As prices rise and unemployment increases, folks will buy less/differently. Business bottom lines will suffer. It....

...takes time to work thru and hit stock valuations but sooner or later the proverbial chickens come home. I saw an interesting analysis that the majority of retail investors currently active have never been hit by a major market rout so think the market must be bullet proof. And retail investors are the one keeping the market buoyant. Warren Buffet has more $$$ in cash as a percentage of his holdings than at any time in his investing history. That, in its totality, says a lot to me. FOMO can really bite you in the a^^ if you have a shorter time horizon for your investments. If you can lose a bunch and wait for ten years to get back to today's levels and then start to grow positive again, this market may be just fine for you. If not, you have been warned.