Stock Market Vs Economy | Erik Averill, Brandon Averill | AWM Insights #11

In recent weeks, we've seen a lot about how the stock market seems to be rallying, but the economy is doing poorly. As a result, we've received a lot of questions about how there can be a disconnect between those two entities.

However, when the stock market is mentioned, many refer to the S&P 500, which only makes up only 44% of the U.S. economy. Whereas, when we discuss the actual economy, it encompasses all goods and services being produced. Likewise, stock market data is a prediction of how those companies might do in the future, whereas economic data is data about the past. How can you navigate all this information? And how does it connect together?  

In this week's episode, Brandon and Erik address these questions and cover:

• A definition of both the stock market and the economy
• The information and data available about each one
• What - if any - information can be utilized between one to inform decisions about the other
• The distinctions between the two including how one can be doing well while the other suffers