The Stock Market is not the Economy
This might be a puzzle to many. How can the JSE All Share Index cross 96 000 points for the first time in the same week when the latest data indicated the South African economy only grew 0.1% in the first quarter? We can expand the question globally. Why are equity benchmarks in countries like Canada and Germany – both big exporters to the US – hitting record highs while global economic growth forecasts are being downgraded because of US trade policies?