Don’t confuse the Dow with the economy. The sto
Post# of 27042
(Total Views: 28)
Posted On: 02/09/2018 9:51:38 AM
Don’t confuse the Dow with the economy.
The stock market and the underlying economy are distinct. The two interact, but they do not proceed in lock step or even respond to each other in predictable ways. Certainly, market instability can undermine both consumer and business confidence and restrain spending and investment. And market bubbles, swelled by overextended borrowing, can explode, wreaking losses and stalling growth.
Still, valuations of assets and the country’s economic health — as determined by productivity, employment, investment, spending, housing values, production capacity, growth and more — are two different kettles.
The stock market and the underlying economy are distinct. The two interact, but they do not proceed in lock step or even respond to each other in predictable ways. Certainly, market instability can undermine both consumer and business confidence and restrain spending and investment. And market bubbles, swelled by overextended borrowing, can explode, wreaking losses and stalling growth.
Still, valuations of assets and the country’s economic health — as determined by productivity, employment, investment, spending, housing values, production capacity, growth and more — are two different kettles.
(0)
(0)Scroll down for more posts ▼