How does stock market & Economy work?
（How can you tell if the economy is going down or the stock market is crashing ….）
Answer ：
the last answer is true, the stock market acts 6-9 months ahead of it actually happening (economic slowdown) you can tell by some indicators.
There’s consumer spending, if i’m correct every time consumer spending started to retract for more than 3 months, the economy and market tanked.
Unemployment rates raise, and go above a certain % (not sure of exact amount, but we’re @ 6.7& as of today, 12/22/08 which is bad
When Hedge Funds, or Mutual Funds, or any big Instititional Investors, are pulling money out of the market, when mutual funds are about more than 5-6% (amount can vary) “in cash” or 5-6% of total assets under management have been luquidated to cash.
Government Spending has to do with the equation too, if that starts to decrease, it’s another indicator…Net exports are another indicator, if they fall, the market can be in trouble…
To find out most of these economic numbers, go to www.briefing.com, economic calendar.
Posted: August 8th, 2010 under US Stock Market.
Tags: Economy work, Stock market