While there have been concerns that the stock market is disconnected from the real economy. Retail investors are actually propping up the market. Most of them are thinking – eventually the market will recover anyway. If I have spare cash now, why not just invest and hold it there.
This is alright as Long as the invested company has the right fundamentals to survive the Covid-19 cycle and the new normal that will subsequently emerge. What we are seeing is a steep recovery led by major blue-chip companies (see the chart in the article below).
If you are concerned that you haven missed the boat, it is definitely still not too late to buy. Companies with share prices lower than 20% from their pre-Covid prices are set for recovery. The question is how long this will take. Obviously, the investor with holding power will benefit in the long run. But as in any investment decision, you ought to understand what you are buying into.