Stock market versus economic fundamentals
Everyone should take a good read of Robert Reich’s September 1 article. I absolutely love this quote. If only everyone understood this, I think we’d see a lot less fluctuation in the market and the economy. But alas, his point:
The stock market has as much to do with the real economy as the weather has to do with geology. Day by day there’s no relationship at all. Over time, weather and geology interact but the results aren’t evident for many years. The biggest impact of the weather is on peoples’ moods, as are the daily ups and downs of the market.
Please, follow Robert’s advice and pay no attention to the short-term fluctuations. It’s the long-term we should be keeping our eyes on — something the U.S. has never been good at.
