The stock market has traditionally been viewed as an indicator or "predictor" of the economy. Many believe that large decreases in stock prices are reflective of a hture recession, whereas large increases in stock prices suggest future economic growth.
Recommended CitationComincioli '95, Brad (1996) "The Stock Market as a Leading Indicator: An Application of Granger Causality," The Park Place Economist: Vol. 4
Available at: http://digitalcommons.iwu.edu/parkplace/vol4/iss1/13