{"id":665,"date":"2018-10-31T01:01:48","date_gmt":"2018-10-30T20:01:48","guid":{"rendered":"https:\/\/wellspringwealth.com\/?p=665"},"modified":"2018-11-01T05:30:37","modified_gmt":"2018-11-01T00:30:37","slug":"weekly-market-commentary-why-did-the-stock-market-fall-when-the-economy-is-doing-well","status":"publish","type":"post","link":"https:\/\/wellspringwealth.com\/2018\/10\/31\/weekly-market-commentary-why-did-the-stock-market-fall-when-the-economy-is-doing-well\/","title":{"rendered":"Weekly Market Commentary – Why did the stock market fall when the economy is doing well?"},"content":{"rendered":"

The Markets<\/strong><\/span><\/h3>\n

Why did the stock market fall when the economy is doing well?<\/p>\n

The answer is that one reflects the past and the other anticipates the future.<\/p>\n

Last Friday\u2019s advance estimate from the Bureau of Economic Analys<\/em>is showed the U.S. economy grew 3.5 percent during the third quarter of 2018. Harriet Torry of The Wall Street Journal<\/em> reported:<\/p>\n

\n

\u201cThe economy powered ahead in the third quarter, driven by robust consumer and government spending, though Friday\u2019s report included warning signs that the business sector faces turbulence that could hold back the expansion in the months ahead.\u201d<\/p>\n<\/blockquote>\n

Third quarter\u2019s economic growth was slower than economic growth during the second quarter and stronger than economic growth during the first quarter of 2018.<\/p>\n

Economists refer to economic growth as a \u2018lagging indicator.\u2019 It is a measure that may help confirm longer-term trends, but offers little information about the future.<\/p>\n

In contrast, the stock market is a \u2018leading indicator.\u2019 It reflects what investors think may happen over the next few weeks or months. The volatility we\u2019ve seen during the past two weeks suggests investors are uncertain about what may be ahead. Many factors are contributing to uncertainty. For instance, investors are concerned:<\/p>\n