Tuesday, November 15, 2011

How is the stock market affected by currency exchange/unemployment/interest rates?

The stock market is a collective view on the future. While a lot of information on expectations of the future come from the past, the prices reflect opinions of the future. BP is prices today to reflect what shareholders can expect to get back in the future, everything that it has made in the past is in the past. So unemployment and interest rates all affect the returns you can expect and have a huge bearing on the stock market

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