A False Sense of Liquidity?
When looking at the capital markets and their relationship to the economy there are many anecdotal, although empirically supported observations that can be made.
One of the counterintuitive ones is that stock market performance and economic activity are inversely correlated. Stock indices advance more during economic recessions and less during expansions. This is one of the rationales for the anecdote "don't fight the Fed." ...674 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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