@algabukky
Financial markets lead economic cycles by 6 to 9 months because they price future earnings, not current conditions. Stock prices represent the present value of all expected corporate profits, causing investors to buy during early recovery signals and sell before recessions fully materialize. While GDP statistics and employment reports describe the past, financial professionals continuously adjust valuations based on forward-looking indicators—manufacturing orders, yield curves, and margin forecasts. This explains why markets bottom during recessions and peak before expansions end
0 reply
0 recast
1 reaction