Share market is different from economy
Good performance of share market is a sign of Healthy economy.
If u look at the great depression it is usually associated with the downfall of NYSE.
I'll try to explain in a very simplified manner.
>Giant corporates are usually listed in the Market.
>Giant Corporates usually employ lakhs of people.
>These People also pay taxes and hence a source of money for the gov.
>Rising Shares means the corporate Is performing well.
>People get good salary, corporate pay huge taxes.
>When People have money in their hand they spend more and pass their money to non taxable section's as well.
But when most companies aren't doing good.
>People get laid off or payment margin gets reduced.
>Lesser tax for the gov.
>People spend less and hence the money does not trickle down.
Market mostly correlates with the economy.