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Are stock markets the real indicator of a country's economy?

  1. rameshbashyam profile image60
    rameshbashyamposted 7 years ago

    Are stock markets the real indicator of a country's economy?

  2. yyoushouldknow profile image57
    yyoushouldknowposted 7 years ago

    the figures are always wrong specially in india where i live. If you know about indian stock market they publih figure of inflation at regular at regular interval which has no sense. and market goes up and down basis on these figure.

  3. MicahI profile image85
    MicahIposted 7 years ago

    I would say interest rates, employment, housing, and business figures are the real indicators of the economy.  The stock market just reflects these indicators.

  4. Dale Michaels profile image58
    Dale Michaelsposted 7 years ago

    Not necessarily. One reason that the stock market may not truly reflect the state of the economy is the present situation we see in the U.S. stock markets.

    Why have the S&P and the DOW been on a tear over the past 2 1/2 years? It has nothing to do with a good economy, since the U.S economy, despite what the talking heads on the mainstream news networks are saying, is in deep trouble.

    The driver of the increases in the general stock markets has been due to the printing of huge amounts of money by the Federal Reserve. A huge amount of this cheap paper has been put into the stock market, thus causing share prices to rise.

    However, if you look under the surface, you'll see that the true fundamentals do not justify such a rise in the general markets.

    It's an illusion.

 
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