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Economy leading stock market

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Reference no: EM133311602

Question

Sometimes the stock market goes up and yet the future of the economy looks iffy. Shouldn't current stock prices reflect future earnings? Some argue that the economy leads the stock market, while others maintain the stock market leads the economy...

1. Do you think that the stock market is leading the economy or is the economy leading the stock market?

2. Are share prices reflective of earnings?

3. Discuss stock market bubbles and the wealth effect.

Reference no: EM133311602

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