What if GDP falls more than the stock market?
In the last recession, GDP contracted by less than 5%, but the stock market fell 57% from peak to trough. Stocks reacted to economic conditions in a way the “real” economy did not. In our present situation, Wall Street strategists are predicting a second quarter contraction for the economy of up to 30% (annualized), which the drop in stock prices have already achieved. Michael and Ben sort out some important d...
source https://thereformedbroker.com/2020/03/29/what-if-gdp-falls-more-than-the-stock-market/
The post What if GDP falls more than the stock market? appeared first on The Reformed Broker.
source https://thereformedbroker.com/2020/03/29/what-if-gdp-falls-more-than-the-stock-market/
Comments
Post a Comment