We know the market anticipates economic activity, which is why it's pointless to buy stocks only after good news has been published. Stock prices are one of the leading economic indicators used by the government to forecast economic activity. The rule of thumb has always been that stocks anticipate the broad economy by about six months.
But now that it's official, and we know from the National Bureau of Economic Research that the Great Recession began in December 2007 and ended in June 2009, the market's crystal ball is looking a little cloudy.
But now that it's official, and we know from the National Bureau of Economic Research that the Great Recession began in December 2007 and ended in June 2009, the market's crystal ball is looking a little cloudy.
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