Monthly Archives: April 2015

Stock Prices: Insulated From The Effect of Personal Income, or Not?

  Is the economy in a brave new era where despite hardships for workers what matters is the ability of the prosperous upper middle class to invest? In this theory, as long as the top 10% remain affluent then they can support the continued growth of stock prices, even if moderate income workers suffer from hidden unemployment.   This could be close to being true in the sense that if buying stocks were simply an auction to buy collectables like rare art works then perhaps the income of the affluent participants in a luxury art dealer’s auction are what matters rather than the income of the average member of the general public. However stocks have some component of rational decision

April 30th, 2015|mayflowercapital blog|Comments Off on Stock Prices: Insulated From The Effect of Personal Income, or Not?