pookie butt asked:


Anything I might need to know, with a source if possible.
The best answer will go to the one who gives me the most amount of information OR who can answer this question:
Do people consider the stock market an adequate indicator of how well the US economy is doing? Please give a source, if possible.

OLLIE

3 Responses to “What can you tell me about the stock market?”

1. DW on December 20th, 2009 4:47 am

   It’s an indicator but only one of many. Gross domestic product, unemployment numbers, housing starts etc… all factor in to a strong economy. For example, the market is up over 2000 points for the year so far but unemployment, while better this month than last, is still enormous. Housing starts aren’t too promising right now either. That said, it does appear that we are in a period of expansion and recovery. Only time will tell.

2. hedgefund on December 21st, 2009 9:17 am

   we will have a second market crash soon according the book “the great depression ahead”

   also according the peter schiff, jim rogers, gerald celente

   the stock market increased recently because of easy money policy, it’s short term. I can almost guarantee you the economy will crash soon for several reasons:

   1. option adjustable rate morgage is like subprime, it will crash soon
   2. commercial real estate will also crash (it is crashing as i write this)
   3. babyboomer will have to sell stock to retire.
   4. the US dollar will probobilly crash due to massive deficit spending and easy money policy.

   I suggert you to buy the yuan and yen or short the dollar.

   you can also buy real assets such as silver.

   you can also hold bond for a few years and the pick up stock for super super cheap after the second crash.

   the economy crisis is not over ( i could be wrong, but I don’t think I am)

3. sam on December 23rd, 2009 7:40 pm

   now it the best time to invest on citi bank (C) because the tress test show they could survive thoughout this recession, but remember this don’t buy AIG stocks because they are too risking and they have sell most of the company to pay back gov’t bailout if you have AIG stocks sell it now.beside AIG can barely pay back the intertest that the money it borrow