My favorite analogy for stocks vs the economy.
The stock market is a Jack Russell Terrier full of energy leashed to its owner, the economy.
The owner walks in a straight line, upright at a moderate pace. Nothing too exciting.
The Terrier is sniffing butts, chasing squirrels and barking at ducks. Kinda crazy here and there.
So if you’re just watching the dog, you’re not watching the economy.
You’re watching the manifestation of hundreds of millions of people’s greed and fear with buying and selling.
But you’re not watching an actual representation of how the economy’s doing.
So it’s important to understand they are connected, but look and act very different from each other.
#markets #economy #stocks #investing