Why did the stock market fall when the economy is doing well?
The answer is that one reflects the past and the other anticipates the future.
The world remains full of opportunities and challenges.
Like an unexpected gust of wind that blows the hat off your head or flips your umbrella inside out, last week’s stock market performance startled investors.
The stock market tends to be a leading economic indicator.
Last week offered some insight to economics and stock market behavior. The U.S. unemployment rate reached its lowest level since 1969 and wages moved higher, yet major U.S. stock indices lost value.
Why didn’t stock markets move higher?
It wasn’t headline news…
But, if newsprint was still popular, last week’s key economic news would have appeared below the fold.
Did you hear the news?
The Markets
All investors are consumers, but not all consumers are investors.
Remember: Volatility is normal.
Major U.S. stock market indices climbed into record territory during August. They gave back some gains last week. Peter Wells of Financial Times explained:
Remember: Volatility is normal.
Major U.S. stock market indices climbed into record territory during August. They gave back some gains last week. Peter Wells of Financial Times explained:
Where is our country’s biggest export market?
Markets were fired up last week after the United States and Mexico agreed on new trade rules. The Standard & Poor’s 500 (S&P 500) Index reached an all-time high and finished the month of August up about 3 percent, reported Michael Sheetz, Thomas Franck, and Alexandra Gibbs of CNBC.
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