Don’t Confuse Local Economics with Markets
Do investors (and the press) confuse the economy with the stock market? Although the economy expands and contracts and stocks rise and fall; they often seem out of synch. Moreover, those that invest in response to anecdotal stories or news headlines or market trends may be doomed to fall short of achieving their investment objectives. Take a look back at the last twenty years investment returns for a wide range of assets depicted in Figure 1 below.