July 31, 2010
How far ahead of the economy is the stock market?
By Planet Wealth
I’ve heard the stock market is an indicator of future economics. We’ve seen a small improvement in the market recently, indicating economic recovery, but when? Also, why does the stock market say it likes Hillary Clinton as VP?
Basically, I’m interested what messages the stock market sends in general.
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2 Responses to “How far ahead of the economy is the stock market?”
Comments
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July 31st, 2010 at 10:23 pm
The rule of thumb is the market is about six months ahead of the economy so when the market starts a sustainable rise the economy should follow in six months.
July 31st, 2010 at 10:23 pm
At this point it is pricing in the rebate checks and will soon be looking at the Christmas shopping season and the new President.
so yes, about 6 months ahead.
This is where it looks tough,imo….
Will the stock market like the next President? If it’s projecting Obama, the stock market may soon fall because the taxes will increase and some protectionism will surface…If the stock market thinks McCain will win, the market will probably scream higher from here…..tough call.