How ReformedBroker explains the stock market vs the economy. investinyou (In partnership with acorns.)
Each day, investors are treated to news about the economy and information about how the stock market has done recently. It can be very difficult to process what's going on because at any given moment in time, there may be very little correlation between how things are going in the real world and how prices are acting on Wall Street.
"There's an excitable dog on a very long leash in New York City, darting randomly in every direction. The dog's owner is walking from Columbus Circle, through Central Park, to the Metropolitan Museum. At any one moment, there is no predicting which way the pooch will lurch." I use this analogy all the time to help people understand how the economy and stock market play off of each other. One of the hardest things to do as an investor is to entertain two opposing thoughts in our minds at once, and find a way to keep them despite the cognitive dissonance this can produce.
But most of the time, neither the economy nor the stock market is as good as it could get, or as bad as it could get. Typically, the economy trudges along a straight path for years at a time and it's the stock market that is easily excitable, ripping to and fro based on the latest information to hit the tape. Over longer periods of time, we do see a correlation between stocks and the economy, but over periods of less than a year, there is literally no rhyme or reason for what has happened.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Australia bowlers deny report of Warner riftAustralia's four frontline bowlers, Mitchell Starc, Josh Hazlewood, Pat Cum...
Read more »
Brown Is Back: How to Incorporate Seasoned Furniture Without Dating Your HomeInterior designers no longer dismiss ‘brown furniture’ as vintage wood pieces that have no pedigree. Instead, they elevate them as crucial elements of décor.
Read more »
Man, 20, arrested in road rage killing of 10-year-old girl: PoliceJUST IN: 20-year-old man arrested for allegedly gunning down a 10-year-old girl in what police called an apparent road rage killing.
Read more »
ACLU: Transfer transgender inmate to women's prison or face lawsuit“The current situation is not only illegal but it is untenable for Ms. Zayre-Brown.'
Read more »
Why Josh Radnor was still living in a $750-a-month sublet while starring on 'How I Met Your Mother''I was the last one in the 'How I Met Your Mother' cast to buy a house,' says 'Rise' and HIMYM star Josh Radnor.
Read more »