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> the stock market is a leading indicator I don't think so. It is probably loosely correlated with the economy at best. The stock market can soar in times of
by 01100011 2y ago
> the stock market is a leading indicator
I don't think so. It is probably loosely correlated with the economy at best.
The stock market can soar in times of cutbacks which hurt non-asset owners but which benefit profit margins. The stock market can boom on liquidity surges that do not translate into economic investments. The stock market can crash while the overall economy does fine(wasn't 2000 basically this, with the economy not really suffering until after 9/11?).
- drowsspa 2y agoHonestly nowadays industry seems to be just about maximizing stock value through hype and CEOs are basically hired just for that. Like all stocks are meme stocks now, profits be damned because you can always do some accounting maneuver, and as long as stock goes up you're all getting your bonus. I wonder if my impression that this has increased a lot in the last decades is correct, and what would be the impact of this on the whole "stock market as indicator of economy" thing.