Nobel Prize-winning economist Paul Krugman starkly laid out the disconnect between the stock market and the real economy in a scathing op-ed

Brendan McDermid/Reuters

• Nobel Prize-winning economist Paul Krugman broke down the broad disconnect between stock markets and the real economy in a scathing New York Times op-ed last week.
• In the piece titled "Stocks Are Soaring. So Is Misery," Krugman warned that investor optimism over Big Tech's profits would not go far as people cannot survive on "rosy projections" about the future.
• Using Apple's $2 trillion market valuation as an example, he pointed out that as long as investors expect the tech giant to generate profits in the coming years, they "barely care" about the prospects for the US economy in the near-term.
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Nobel-winning economist Paul Krugman explained what is driving the large disconnect between rising stocks and "growing misery" in a New York Times op-ed on August 20. 

"The real economy, as opposed to the financial markets, is still in terrible shape," he wrote. 

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