Correlation between market opinion pieced and reality

682 Views | 1 Replies | Last: 3 yr ago by JSKolache
jamey
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AG
Anyone noticed there's more and more opinion pieces about the market going down, imminent recession...etc But at the same time the actual market is either holding within its band of not going up vs several weeks ago when the opinions were less dramatic?


And it's not just random opinions, it's commentary from banks and other businesses and their projections


Is this there was of manipulation, do as I say nit as I do sort of thing?


Or is all hell breaking lose around the corner and could be months away?
JSKolache
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AG
The economy (i.e. GDP) and the stock market are not the same thing. Sure there is a correlation but they are different animals.

Experts think GDP will be sub zero in this week's report, which will be 2 qtrs in a row which equals formal recession, white house talking points not withstanding.

The stock market has had some small ups over the last few weeks, because there are always buyers & when buyers outnumber sellers price trends up.

I think sellers will overtake buyers after recession becomes official & fed rate hikes keep on trucking along. We ain't of the woods yet on the economy & won't be until much much more stimulus unwinding is allowed to happen. That said, many stock prices are nicely discounted for buy and hold investors. I think prices will trend lower still, but there are good deals out there already.
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