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Originally Posted by $5 submissions
How tightly correlated is the stock market to the economy?
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Supply & demand vs perceived value throw in a tarriff war and you fuck with supply & demand, which fucks with the perceived value of a companies stock. Part of the reason Ford's stock went down 29% after Trumps steel tarriffs. On top of that they eat $1 Billion in tarriff fees, have to layoff 24,000 people to compensate, their stock goes down again because nobody knows how long the tarriffs will continue to eat away at profits and at what point will Ford pass losses on to the consumer in the form of product price increases.