The Economy is going down and the stock market is going up what’s that all about?
First you have to understand the Economy is not the Stock Market. The economy is loosely defined as the activity related to the production, consumption and trade of all goods in services. So, in simple terms, it is you going to work, making something or providing a service, earning a paycheck and then using that paycheck to purchase goods and services provided by someone else. Multiply that by all the other people, companies, non-profits and government entities out there and you have an economy. The Stock Market is a market where you can buy or sell stock (or shares) of companies. In the simplest sense their prices are decided by what a willing buyer and seller agree to. People are often setting the price they are willing to pay based on how they think the company will perform in the future, so it may not be as important to them how the company (or economy) is doing right now as long as they are convinced it will do better in the future. They are buying on the belief the company ...