Is good economics news good or bad for equities

Jay Soloff

Argonath Financial

Is good economics news good or bad for equities? In the US, economic data poses something of a conundrum to investors. Should we cheer on strong economics news because it means the economy is getting stronger? Or do we prefer to see the Fed continue providing monetary stimulus as much as possible? Without a doubt, asset prices have gotten a nice boost from the Fed's unconventional monetary programs. The thing is, the Fed can't keep providing stimulus forever. At some point, the Fed's generous money flow will result in more spending than savings - and that's when inflation can rear its head. Besides, don't we want to see the economy grow and strengthen? Ultimately, it will be better for everyone for the economy to prosper. Nevertheless, for the time being, it's hard to know when good news is actually good.

1 topic

Jay Soloff
Jay Soloff
Research Analyst
Argonath Financial

I'm an investments analyst for a US-based independent investment research firm. My focus is on economics, options, and all types of stocks, but especially tech, Internet, and renewable energy companies. I have experience as a options market...


No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.


Sign In or Join Free to comment