The index is 10% higher than it was in late February and late March, before the outbreak of the new outbreak in the global market. The S & P 500 index is close to its highest level in history and closed at 3349 last week, only 1% lower than the peak of 3386 on February 19. In contrast, after the global financial crisis of 2007-2008, it took five years for the S & P 500 index to recover from its slump. At the same time, the U.S. economy is suffering: unemployment exceeds 10%, and GDP fell at an annual rate of 32.9% in the second quarter, a record high. The current situation of the US economy is much worse than during the global financial crisis. But the federal government was slow to respond and Congress was unable to reach a consensus on a new stimulus package. < p > < p > in general, the stock market can reflect information about the economy. Buying and selling stocks is often an immediate response to new information. In the past, before unemployment rose, the stock market had fallen. Today, however, the performance of the US stock market runs counter to economic fundamentals, and the sharp rise in the stock market does not reflect the suffering of the American people. Jamie Dimon, JPMorgan’s chief executive, said in an interview with CNN business that the government and big companies should take action to reduce the burden on the public. At present, it is extremely dangerous to invest in real estate in the United States. With the temporary stimulus package, house prices are still high and there is a risk of a sharp decline. The prices of commodities fluctuated and declined during the epidemic period. The World Bank warned in April’s commodity market outlook that the predictable two-way risks are high. Both interest rates and inflation declined before the new coronavirus pandemic, which was further depressed by the new coronavirus epidemic. In March, the Fed cut its interest rate target range to 0-0.25%. The Reserve Bank of Australia cut its interest rate target to 0.25%, but is actually ready to accept cash rates close to zero. < p > < p > at present, the prominent feature of American stock market is the influx of retail investors. Since the market peaked in late February, retail investors have become net buyers of stocks, while professional institutional investors have become net sellers. Researchers Carole comerton Forde and Zhou Zhong believe that this may be due to less investment channels and more time during the outbreak. Some of the government’s subsidies to businesses and individuals may also have entered the stock market. First of all, there will always be an end to a new coronavirus pandemic. LPL believes that the market is always forward-looking, and the market is fully confident that the vaccine will end the new coronavirus pandemic after it is available. This is consistent with the analysis of Tom Lee of fundstrat. Tom Lee said in July that at least one of the 133 candidate vaccines for coronavirus is likely to succeed, which could lead to a dual market and could push stocks to new highs. Secondly, low interest rate. Despite the high price of stocks, they actually look cheap when compared to US Treasury bonds, which currently yield about 0.6% on the 10-year note. < p > < p > LPL believes that some of the money is invested in the stock market. “Historically, both the growth of money supply and the share price of (Hong Kong stock 00001) have grown simultaneously.”. Finally, the “winner” support in the epidemic situation. At the end of July, Facebook, apple, Amazon and alphabet reported strong results, with stocks of high-tech companies driving the stock market up. About 40% of the S & P 500 index is classified as technology, digital media or e-commerce. < / P > < p > LPL continues to remind investors that stock price surges during the recession are not “unprecedented”. Stocks rose in seven of the 12 post World War II recessions, with an average gain of 5.7%, according to the research company.