Market View features, from ICMA-RC’s investment professionals, can help you increase your awareness and understanding of the economy and markets, and how current trends may impact your investments and long-term planning.
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Economists consider the stock market to be a leading economic indicator; thus by definition, the stock market turns ahead of the economy and has a big influence on consumer confidence. This statement can be observed in the chart above with consumer confidence tending to reflect the movements of the stock market and often turning after the stock market has changed directions. While historically this pattern may be apparent, history may not repeat itself and is no guarantee of future results.