Is the stock market a good indicator of how the economy is doing?
I have heard from many people that if the bag goes well, this necessarily means that the economy is doing well in general. But with the recent rise in oil prices, stagnant wages, the mortgage and credit crisis and a government with an amount of outstanding obligations, this seems a bit hard to believe. Can anyone give objective information on this issue?
Stock Market Now!
Yes, the stock market as Frühindikator.http: / / is the economy. approaches. com / cs / cycles / a / economic_ind. htmUnd yes, the economy has a percentage of GDP have been very good. Corporate profits and consumer spending increased since 2002.Der reason things look so bleak, because the media always is pleased to announce the bad news. . . But high gas prices has not stopped people from traveling and expenses, the mortgage crisis has an impact only 5% of all mortgages (Direct), and the government * always * had large debts.
It is a matter of definition. . . in their minds a good economy = bag is good and well their investments. (Someone who has a lot of weight in the stock market or the weight of a selfish person, not the type elitist knows, not really care what happens to other people) I would be the pulse of a country by a wide range of indicators unemployment, inflation, real estate, bankruptcy filings, employment growth, falling real wages take / raise, the impact of job NetFlow, illegal employment, the budget deficit, trade deficit, prices energy, etc.. . . . . You have to look at the big picture. . . . But really, if you ask Americans, the survey, are generally a good idea for the country. . . and how a poll now shows that 70% of Americans believe the country is headed in the wrong direction and I would say at least 60% of respondents say the economy is not going well.
The equity market tends to reflect what investors in the economy occurs in about 3-6 months to feel.
You put it is the best indicator.
The bag is usually an exaggerated indicator of how well or badly, “most investors think,” the economy will do in the future, not a picture of where it actually is. . .