The problem with making charts like this is that they are punchy to people who don’t understand that the stock market is not a very good indicator of economic health (and that it’s incredibly outdated by this point, making the numbers untrue) but anyone who actually does any investing, even casual investing, quickly realize that the DOW, NASDAQ, and S&P500 are completely unmoored from reality.
The fed talks about (but crucially does not commit to) a half percentage point interest rate cut next month? Line go up!
Tesla quarterly earnings beat their revenue goals, but not by as much as analysts predicted? Line go down!
The numbers will go up or down mostly irrespective of what the man in the oval office does. What Trump or Biden say and do as President certainly has an effect, but then the market forces usually correct it days later and it’s back to business as usual.
The more important stats to focus on are how regular consumers are feeling the pinch every day with the inflated cost of goods and services. Who cares about whether or not the wealthiest companies are doing well for themselves. If the stock market has a bad day, just wait a month and you’ll be back in the green again. If the consumer market is having a bad day, it’s not likely going to be isolated to just one day.
The problem with making charts like this is that they are punchy to people who don’t understand that the stock market is not a very good indicator of economic health (and that it’s incredibly outdated by this point, making the numbers untrue) but anyone who actually does any investing, even casual investing, quickly realize that the DOW, NASDAQ, and S&P500 are completely unmoored from reality.
The fed talks about (but crucially does not commit to) a half percentage point interest rate cut next month? Line go up!
Tesla quarterly earnings beat their revenue goals, but not by as much as analysts predicted? Line go down!
The numbers will go up or down mostly irrespective of what the man in the oval office does. What Trump or Biden say and do as President certainly has an effect, but then the market forces usually correct it days later and it’s back to business as usual.
The more important stats to focus on are how regular consumers are feeling the pinch every day with the inflated cost of goods and services. Who cares about whether or not the wealthiest companies are doing well for themselves. If the stock market has a bad day, just wait a month and you’ll be back in the green again. If the consumer market is having a bad day, it’s not likely going to be isolated to just one day.