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Host:What is the stock market go up and down?
David John Marotta:The stock market is a leading indicator of what hundreds of thousands of investors think is going on in the economy. So if investors think that the economy is going to be better in six months, they are generally investing and making the stock market go up. If they think we are going to have recession in six months, stock market often begins to turn six months, before we actually have the recession. Now that assumes that the market is brilliant and actually knows how to predict the future, but the stock market is always adjusting based upon what they think the growth in various companies is going to be
Expert: David John Marotta
President, Marotta Wealth Management, Inc.
David John Marotta is the President of Marotta Wealth Management, a fee-only financial planning and asset management firm in Charlottesville, Virginia. He is an oft-quoted writer and speaker on financial matters and his weekly financial column can be found at www.eMarotta.com
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Tags: Money, Investment, Savings, Stocks, Bonds
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