Op-ed:

Tying the Economy and Stock Market Together

By: Diane Sori / The Patriot Factor

This opinion piece is my opinion alone, and does not necessarily represent the views of blogspot.or google.com.    

 

...When consumer buying power is down the “stock market” experiences what is known as “increased volatility,” because reduced consumer spending lowers corporate revenues and hence profits in a cause and effect scenario that tends to see overall stock valuations dropping. And this is what leads some investors into a panic mode, and thus “sell-offs” (as devaluations) begin....a vicious cycle indeed. 

 

Remember, when the “stock market” drops too fast serious economic consequences can see the government possibly having to raise taxes, which in and of itself is an obstacle to economic growth. And this helps to tie the “stock market” and the economy together, as does war itself for uncertainty of a war's outcome, coupled with the logistics of what would likely be rising inflation, tends to see panic driven “sell-offs,” directly affecting overall economic conditions. 

 

Drops in the “stock market” are normal expected occurrences for today's drop can easily turn into tomorrow's gain. But when the game of war is thrown into the mix...in this case the war with Iran...the tie between the “stock market” and the economy becomes critical. Why so...because if said war does not turn out as we hope it does, the “stock market” could see gains being immediately wiped out which in turn will affect our economy and “We the American People” to a degree we have not seen in decades. Read entire article here.