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That just means the economy will continue to grow, it doesn't specify how the stock market can grow faster than the economy.
by eloff 4y ago
That just means the economy will continue to grow, it doesn't specify how the stock market can grow faster than the economy.
- nostrademons 4y agoThe 2% economic growth rate is an average. It might be the case that the average worker's real wage grows 0% (this is basically true [1]), while corporate profits, which make up ~10% of the U.S. economy [2], grow 20%/year. [1] https://en.wikipedia.org/wiki/Real_wages#/media/File:United_States_real_wages_(red,_in_constant_2017_dollars).png https://en.wikipedia.org/wiki/Real_wages#/media/File:United_... [2] https://fred.stlouisfed.org/graph/?g=1Pik https://fred.stlouisfed.org/graph/?g=1Pik