No Clear Link
From The Financial Times on February 9, 2005:
“Investors who buy shares in companies in fast growing economies are risking disappointment because there is no clear link between equity returns and GDP growth.”
The Financial Times
More importantly there is no clear link between the fundamentals (however those may be sujectively determined) and the price of the stock, currency, future, etc. You can have the greatest fundamentals in the world and still see a stock tank. Of course, and we should all know this now post bubble, the fundamentals can be terrible and a stock can soar.
