Don’t Let Stock Market Performance Change Your Economic View
November 10, 2009 – 5:14 am
It’s sad to admit, but in this volatile stock market I find that I’m happy if the market has a major uptick and I feel more down and gloomy if the market takes a beating. I want my (and your) retirement portfolios to grow and my investments to yield a reasonable return just as much as the next guy.
Unfortunately the daily gyrations of the market have almost nothing to do with the economy or anything else that will impact your daily life in the short term if you’re still in the workforce. Over time reduced spending will hurt retailers and manufactures. Banks that have stopped lending money will struggle to produce profits, and their stock prices will eventually drop to reflect a poor financial outlook. But day to day, the positive or negative return of the stock market does not dictate whether we’re headed for a recession, depression, stagflation, or just indigestion.
Image Credit: Martini Captures
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