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| | | | | | | | | | Why Investors Shouldn't Care About The Economy
Equity investors should ignore economists and GDP forecasts because these predictions have nothing to do with where stocks go, according to Societe Generale's Albert Edwards.
He cites the research of Andrew Lapthorne of SocGen, whose data on GDP and equities shows the two have little to do with one another historically. Note, equity returns actually have a small negative correlation to GDP growth, according to this data.
Edwards cautions, however, that this trend may be changing in the U.S.. He points to profits now rising in line with economic momentum, which suggests that our new economic environment is more like Japan's economic Ice Age. Read » | | | | | | | | | | Also On Clusterstock Today: | | | | | | | | Advertisement | | | | | | | | | The email address for your subscription is: dwyld.kwu.careers@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Clusterstock RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy | | | | | | |
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