Attention Economy


Wednesday, September 29, 2010

Wall Street is Starting to Realize that Macroeconomics Matters

Equity traders are increasingly focusing their attention on macro forces ... apparently, ignoring the broader viewpoint on the American and the global economy is not a reasonable stance anymore. If business schools and finance departments come to the same realization, it may help future generations of traders and market participants.

http://online.wsj.com/article/SB10001424052748704190704575489743387052652.html
Interesting Quote from the WSJ article:
"Stock pickers say macro forces began moving stocks in a big way during the 2008 financial crisis, and that has continued this year following the European debt crisis. Traders also are focusing on the potential for a double-dip recession to hit corporate profits; on government deficits; and especially on what central banks will do about stimulus programs that pumped cash into the economy".