The relation between economy and the stock market

My youtube homepage showed me a TED video from A. Rastani, entitled “biggest lies investing”, and I thought it was worth it taking some notes directly into the blog, along with some useful links if you are interested in the subject. Title a bit misleading, and only one concept repeated, but some interesting quotes worth mentioning.

Buy low, sell high

  •  “Be fearful when others are greedy and be greedy when others are fearful”  – Warren Buffet
  • Buy when blood is running on the street” – J. D. Rockefeller

Economy not correlated to the stock market

  • “If you spend 13 minutes thinking about economic forecast you’ve wasted 10 minutes” –  Peter Lynch

As a further proof of truth of the principles above, you can look at the 2008 economy crash, after which in 2009 the stocks value went up 60%, and I think that’s what happened in the UK after Brexit (June 2016)

FTSE 100
FTSE 100. Brexit referendum: June 2016

The video here:

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