The article explains how although the economy has continued to decline as we near the end of 2008, stocks have been stable and continued to increase from the November low (around Nov. 20th.) In November alone, the economy has suffered over 530,00 joblesses, further bailouts, and companies going under. Even with stocks steadily increasing, it still does not act as an accurate indicator of the current condition of the economy. The article states that we can still expect investors to sell, or "cash out" towards the end of the year, which will lead further into this economic depression.
-What indicators should be examined during this period?
-When can we truely say that the bottom has been reached?
2 comments:
In a recent CNBC article they are predicting the market to continue to fall until 2012-2013. So unfortunately it doesn't look like we are near the bottom yet.
We should look at interest rates as a good indicator, and I think we can say the bottom has been reached once we have had a few months of sustained growth.
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