Finance Education: The Market and the Economy

The market is not the economy.

This is a lesson that man people who are new to investing have to learn. You would think they are tied together, especially since stock prices should be tied to earnings. Obviously, the economy has an impact upon these.

In this video I discuss how this type of outlook often breaks down. The market has another factor that it deals with: capital flow. This is often what leads to market runs and, also, pullbacks.