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The stock market is not the economy.
by 2OEH8eoCRo0 4y ago
The stock market is not the economy.
- super256 4y agoTrue. But it always works a bit like this: First the stocks come down, then the earnings and then the whole economy. It will be interesting to watch what guidance the companies will give for the rest of the year.
- 2OEH8eoCRo0 4y agoI thought it was the other way around. The economy slows which means earnings slip and then that causes people to dump the stock. This is why earnings calls are the trigger- it's when the data is officially reported to the public.
- sph 4y agoIf it affects the economy it is the economy.
- jerf 4y agoEverything's correlated to everything. I won't make any claims that the stock market is particularly correlated to the economy... it's kinda supposed to be, but there's a lot of things that get in the way. Still, in the end, when things are "generally down", you're going to see the economy go down, the stock market go down, people's fortunes (large and small) go down... they may not be as connected as they "should" be, for some value of "should", but they are certainly neither anti-correlated, nor entirely uncorrelated.