Pillar 2 of the Elliott Wave Pillars Series
Fact: Most economists hold a dangerous misconception about the relationship between the economy and stock market — and it may hit you right in your wallet.
Economists say the economy drives stocks. In 2007, they said we had “Goldilocks economy.” If you bought stocks based on that view, you got caught in the worst crash since 1929. Then, in early 2009 — after months and months of the Great Recession hardships — the economy was in shambles. If you sold stocks, you missed out on the biggest rally in 80 years. Oh, and — the economy only improved after stocks lead the way, again.
The economy doesn’t lead the stock market; it follows them. This installment of our Elliott Wave Pillars Series will further re-align your view of the markets — and help you make better timing decisions.