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Oct
03
Filed Under (Futures) by stock
Bob Smith asked:
I’ve heard the stock market is an indicator of future economics. We’ve seen a little improvement in the market recently, indicating economic recovery, but when? Also, why does the stock market say it likes Hillary Clinton as VP?
I’ve heard the stock market is an indicator of future economics. We’ve seen a little 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.
SYLVESTER
Comments
Ken D on 5 October, 2009 at 10:01 am #
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.
eaglesonaperch on 7 October, 2009 at 1:14 am #
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 tricky,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.
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