The U S. Stock Market Is Now Worth $30 Trillion
First, stock prices are alleged to replicate market expectations of the longer term earnings of companies. I don’t love the phrase “the stock market isn’t the economy,” as a result of stock costs may be an important economic indicator and shouldn’t be disregarded. But it’s definitely the case that the stock market reflects expectations about only a portion of the economy, and that it reflects expectations.
Investors who expertise a crash can lose cash if they sell their positions, as an alternative of waiting it out for a rise. Subscribe to CNBC PRO for unique insights and analysis, and reside enterprise day programming from around the globe. Traders work via the closing minutes of buying and selling Tuesday on the New York Stock Exchange flooring on February 25, 2020 in New York City.
Unlike the quickly dwindling steadiness in your brokerage account, money will still be in your pocket or in your bank account in the morning...
Read More