Obviously if it keeps going down, that’s bad. But it looks like it’s at a support level and still much, much higher than it was 5 years ago. (Using SP500 as a proxy for the market at large)
In: Economics
1. Abstract stock market index number doesn’t matter, but stock market movement is an indicator of investors expectations.
2. So a big drop indicates a significant worsening of expectations.
3. It doesn’t mean things will go badly but it is what people expect. Example: stock market drop during covid. Obviously expectation was pretty bad, but it rebounded because feds printer went brrr
Latest Answers