[Sandtrap328]

Originally Posted by Rags123

The OP made a relationship between the stock market and our economy and the best way to respond to that is to simply show snippets from the experts...

From the Economist...

"An oft-quoted argument for investing in emerging markets is their superior economic growth. But the professors have pointed out in the past that economic growth and equity returns are not correlated at all. Jay Ritter of the University of Florida has a paper on the same issue. If this lack of relationship seems odd, the professors' argument is more subtle; yes, it would be useful to be aware of future economic growth. But being aware of past economic growth does not help; or rather, it is a a contrary indicator. You would be best placed investing in the slower-growing economies of the past, not in the fastest."

Growth and markets: A puzzling discrepancy | The Economist

"In fact, there is little relationship between the magnitude of GDP growth and stock market performance."

Read more: Little Relationship Between Stocks, GDP - Business Insider


But to the point about being OFF THREAD SUBJECT, we really werent. There are many who think the economy is steaming but everyone is not sharing, thus the conversation relative to who is enjoying this trend. I believe the conversation was well in line with the thread topic.

The big number is the growth in GDP versus the growth of median income.

While there are a lot of good signs, in the last few years, the gap between the two had widened more than in any years since the beginning of 2000.

Without serious tax reform and an overhauling of entitlements, that gap is going to widen.

The market is not ever going to make our economy better so the 18000 is nice to applaud, it does not push sufficient growth for everyone to enjoy the fruits.

Let us hope that our new congress can work together to get some of this done and then we can cheer loudly.

What the OP (me) did was to take a quotation out of the December 24 issue of The Daily Sun meant to be some good economic news. It did not have sinister political meaning; it did not mean everything is hunky dunkie; it shows a positive direction of the economy.