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Stock Markets and Economic Data (Correlation)

Traders and investors should understand the relationship between the stock market and economic data.

Many are baffled when an economic report is produced showing poor performance, yet the market does the opposite. For the experienced this comes as no surprise because the stock market is very often a forecast of future economic data. The data itself is often lagging information.

Once you understand this you can better time your stock positions and be less surprised or even bemused by the stock market itself.

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As a long term investor/trader I have consumed hundreds of financial books and endured countless hours of self education. My hope is that this channel will reduce the learning curve duration of many aspiring investors by providing the key information in a concise and enjoyable manner.

I also offer a paid subscription service for those looking to see all my investment decisions.

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44 COMMENTS

  1. hello quick question for you. Could you please tell me the software you use to make the animations for your videos? Thanks!!!

  2. Is there any reason the 2001 recession isn’t included? looks like NBER declared 2001 as a recession in 2003? If the pandemic recession is included it doesn’t make sense to not include 2001.

  3. One of the clearest explanations of the market cycle I’ve ever heard. The current Nasdaq 100 index is a good example – up 25% this year whilst all the economic data is pretty negative e.g the US debt ceiling concerns. Looks like the smart money is buying up technology fast whilst it is still cheaper than in 2021. Thanks as alway, Gareth.

  4. can you do a video of stock valuation corelation with its actual price ?? people say i should invest in undervalue stocks

  5. The media is currently barraged with a lot of economic data right now. It takes a lot to see beyond the whole ocean of news on focus on what is important, which is that no matter how low stocks go, they always bounce back. I really ignore all the news and keep investing. I recently allocated about $121k to put in the market as we anticipate a crash. Any recommendations?

    • We underestimate the fact that banks are corporate entities also governed by greed. Since 2020, the banks have been over-leveraging their assets, which was one of the reasons for SVB’s implosion. I have never been okay with keeping much money in the bank. I simply invest through my financial advisor, collect my profits, which I then spend.

    • I’ve been in touch with a financial analyst ever since I started my business. Knowing today’s culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders

    • My Financial adviser is Olivia Maria Lucas she’s highly qualified and experienced in the financial market. She has extensive knowledge of portfolio diversity and is considered an expert in the field. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market

    • Olivia Maria Lucas really seem to know her stuff. I found her website, read through her resume, educational background, qualifications and it was really impressive. She is a fiduciary who will act in my best interest. So, I booked a session with her

  6. So one more in the list of leading indicators..n guess what..it is the market itself..😊.. Nice useful explanation..

  7. Is it just pertaining to gdp per say or to all the remaining data points also..like fed rates, cpi data, crude prices, dollar fluctuations..etc..in all these also does the market factors in early??

  8. it feels good to see the market in green, but just how long until we actually break even, I’m the average retail trader, DCA-ing, buying and holding on to stocks for eons, but it’s like I’m up 5% today and down 17% the next week, Yes the market is very unpredictable, there’s winners and losers, and it’s looking like I’ve been on a losing streak, while others make huge 6figure gains in the same market. What strategies are these folks using?

    • So what I do is buy companies that are doing good things, executing on business plans and then short companies that are missing earnings, it’s as simple as that.

    • we’ve been in a rally for the last decade, you just gotta accept not everyone is as knowledgeable in the market to handle the opportunities a crash market presents, and unfortunately for me too, I got in 2019 right before the market’s melting point, I just hope I recover soon enough before retirement. Stay strong.

    • I think the market will suffer more downtrends before full recovery, esp. with the inflation, hiked interest rate and looming recession bound to happen 2023, you should understand the market is not just finance and valuation, it’s history, it’s market psychology, it’s understanding how the world moves, which is why at this point in time, it’s ideal to work with an Investment-adviser with an unparalleled track record, from first hand experience, I could say they stand a better chance than most of us ever would and it has been reflecting on my portfolio. I made over $850k in net gains this year alone and I’m unbothered about the market outcomes cause I’m certain I’ll make a killing, it’s all perspective guys.

    • @@MariusNatt Nicely said, I was thinking about going that route too, Jimmy Cramer has been going on about opportunities at stake in this present market and I’d really love to set my portfolio up for whatever is coming 2023, could you recommend this coach that guides you?

    • @@AshtonGrace Search and connect with “Maria Teresa Tyler” . She’s a verified CFP and she helped me see that returns can be made in both bull and bear markets. She covers things like investing, insurance, making sure retirement is well funded and looking at ways to have a volatility buffer for investment risk, lots of things.

  9. One of the cool things I learned when I learned to trade was that the market does what the market does and the news makes a narrative out of it. So the market will fall just like you expected it to and the news will report something like “Dow drops 200 points as unemployment report is higher than expected.” It’s like “No, the market was always going to drop once it reached that level.”

  10. hmmmm, not a bad video but i would have liked to know how to incorporate understanding of this leading nature into actual trades, that would have made this a very good one, nevertheless thanks for your hard work

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