What does the value of a stock market really mean?
(I’ve noticed that the FTSE 100 used to be higher than the Germand stock market, but now the main one in Germany is much higher. Does that mean that the German economy is doing better than the British one? Or that German companies are doing better than their British counterparts?)
Answer :
Stock Indices can be a good indicator of a countries eocnomic well being. It is infact a leading indicator of a countries economies well being.
Relative strengths can be used to figure out the state of well being of different economies. If one is going up and the other is sluggish then the one that is going up is in good shape for the present. Tides can change tommorrow as the economic luck shifts among countries, it depends on the regulations and policies adopted by each country and how it reflects in the economy.
Relative strengths can be used to figure out the state of well being of different economies. If one is going up and the other is sluggish then the one that is going up is in good shape for the present. Tides can change tommorrow as the economic luck shifts among countries, it depends on the regulations and policies adopted by each country and how it reflects in the economy.
Posted: July 26th, 2010 under US Stock Market.
Tags: Stock market, value of a stock market