The housing market is strong and those able to work remotely have saved mountains of cash they are using to pump up stock markets.HomeNewsResearchandMarketsOverheatedstockmarketatriskofbubbleinadisconnectfromeconomy,expertssayleungchopan/123RFRossMarowits“We’reallinthistogether”hasbeenacommonrefrainsincethearrivaloftheCovid-19pandemiclastMarch,buttheyawningchasmbetweendismaleconomicdataandsoaringstockmarketvaluationssuggestssomeCanadiansaredoingmuchbetterthanothers.Alargesegmentofthepopulationisuntouchedfinanciallybythecrisisorinbettershape.Thehousingmarketisstrongandthoseabletoworkremotelyhavesavedmountainsofcashtheyareusingtopumpupstockmarkets.Meanwhile,lockdownshavecausedmajordisruptionsforworkersintheservicesectorandotherpartsoftheeconomythathavebeenforcedtorelyongovernmentsupport.“Allthejobsthatwerelostinthecountrysincethebeginningofthecrisis—notsome,all—wereinlow-payingsectors,low-payingoccupations,”saysBenjaminTal,deputychiefeconomistforCIBC.NorthAmericanstockmarketshavebeenonatearsinceMarch,settingrecordhighsalmostdailyevenwhileCovid-19hasbatteredtheeconomyandproducedlacklustreemploymentdata.Someindividualstockshavesoaredamidthefroth.Teslasharesareupabout1,160%overthepastyearwhileOttawa’sShopifyInc.hasrisen425%tobecomeCanada’smostvaluablecompanybymarketcapitalization.TheS&P/TSXcompositeisup65%fromMarch2020lowsand6.5%inFebruaryalone.ThereboundhasbeenevenstrongerintheU.S.,withtheDowup73%,S&P50079.5%andthetech-heavyNasdaqcompositeupabout113%.Meanwhile,Canada’sunemploymentrateclimbedto9.6%inJanuaryas212,800jobswereerasedthatmonth.Thedisconnectbetweenso-calledMainStreetandBayorWallstreetsisnotnew,buthasbeenaccentuatedduringthemost“asymmetricalrecession”inCanadianhistory,saidTal.RetailinvestorswithhealthycashbalanceshaveincreasedmarketvolumesandcontributedtofrenziedbuyingthatpropelledstockslikeGameStopandBlackBerryInc.TheTMXGroup,whichrunstheTorontoStockExchange,hasnotedthatamidanincreaseinvolumes,theproportionofretailtradingpeakedat45%oftotalvolumetradedinJanuary