Markets: Fooling most people most of the time

Cyclical stocks have been valued as growth stocks, while small-cap stocks with slightly improved earnings have relentlessly risen

Stock markets all over the globe have come a long way from the sudden crash in late March and early April 2020, when the pandemic brought the whole world to a standstill. But the markets kept rising like a Phoenix, braving severe lockdowns, high unemployment, business closures, the migrant labour crisis, a complete shutdown in the travel and entertainment businesses, worries about the uncontrolled rise in bad debts, etc. This miracle occurred partly due to stimulus packages unleashed by governments and partly because most businesses were allowed to resume operations in June 2020 and many saw their costs going down