Enormous drop in the economy, astonishing market returns! What gives?

The chart below shows the actual quarter to quarter growth of the US economy since 2016.

Retail investors like Monday Morning Program members justifiably always felt that the stock market and the economy moved in parallel. When the market was doing well, they were doing well. Conversely, when the market was doing poorly, investors (not Monday Morning Program members) were doing poorly.

True to form, the 32.9% drop in the US economy from its previous quarter coincided with the worst market drop in history.

That phenomenon began to diverge in 2020. On March 23, 2020, Federal Reserve announced extensive measures to support the economy.

From that point on, up to last Friday, the market grew by 38% even as the economy continues to do badly! One of the measures taken by the Federal Reserve was introduction of the lowest interest rates in history! That encourages stock market investing.

Monday Morning Program Members rebalanced to their personality selected asset allocation and took profits. They are smiling.

When the inevitable reversion to the mean takes place and the market drops, Monday Morning Program members will continue smiling as they snap up the bargains which will develop.

As we frequently state, with the Habits of Monday Morning Millionaires, luck hardly matters.

Good luck!

For members interested in covered calls, for an update on the Novavax experience of one of the members we have been reporting on, log in before the market opens tomorrow.


We have designed the Monday Morning Millionaire Program to offer abstracted investment education. Over the last two decades, the program has outperformed over 90% of portfolios, including professionally managed ones.

The program does not provide any investment advice or endorsements.

With fewer than 350 words, members can read this post in less than five minutes. Following and studying the links embedded in these posts would take longer. How members manage a post depends on their level of interest and investing knowledge.

Dr. Milan Somborac

The Monday Morning Millionaire Program supports do-it-yourself (DIY) investors which I have been for over 50 years. About my team and me