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Since stocks are a piece of ownership in a company, the stock market is basically a vote of confidence in the future of all these companies and, as such, in the U.S. economy itself. A drop of 11% in a quarter indicates a sustained loss of confidence..
If confidence is not restored, the stock market will continue to fall over a sustained period of time. A prolonged downward trend would eventually indicate the start of a bear market. This could hurt the economy more and push it further toward a recession
Are we in the midst of a recession? Let me know your thoughts below!
Don't forget to leave a follow for more great posts!
Since stocks are a piece of ownership in a company, the stock market is basically a vote of confidence in the future of all these companies and, as such, in the U.S. economy itself. A drop of 11% in a quarter indicates a sustained loss of confidence..
If confidence is not restored, the stock market will continue to fall over a sustained period of time. A prolonged downward trend would eventually indicate the start of a bear market. This could hurt the economy more and push it further toward a recession
Are we in the midst of a recession? Let me know your thoughts below!
Don't forget to leave a follow for more great posts!
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Next: SHOULD WE BE WORRIED ABOUT A DEPRESSION?
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