Tuesday, January 28, 2014

Why The Stock Market Excels While Our Economy and Employment Suffer

It is important to realize that around 50 percent of the SP500′s earnings are generated overseas

This means that our stock market is to some extent decoupled from our economy. Statistics like ratios of corporate profits to GDP are not necessarily going to be indicative of movements in income shares. Imagine a foreign subsidiary getting profits without generating and GDP whatsoever. 

For full discussion click here