>I always thought though that the stock market was only vaguely related
>to employment?
>
>Dana
The index, and more specifically the SP500, is a leading indicator.
Jobs are a lagging indicator. This is mostly because cutting or creating
are a results of corporate profits. Corporate Profits are also a lagging
idicator.
You are correct in thinking that the two are not directly linked. We saw a
period of great growth in the capital markets but did not see any job
creations. But the two, in this case, are related by that both are metrics
to measure the economy.
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