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While US economy shrank 3.5% last year, the largest decline since just after World War II, stock markets posted double digit returns. Given that the

While US economy shrank 3.5% last year, the largest decline since just after World War II, stock markets posted double digit returns. Given that the value of financial investments should depend on the underlying real investments, why stock market were soaring when the real economy had its worst contraction? What are the factors help pushing up the stock markets ? When the business press mentioned US stock market performance, do they mean the overall performance of all listed stocks?

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