D J
·shared a media post in group #The Most Important Thing
Stocks do well when the economy is booming. When consumers are making more purchases, companies receive higher earnings thanks to higher demand, and investors feel confident. One of the best ways to beat inflation is to sell bonds and buy stocks when the economy is doing well. When the economy slows, consumers buy less, corporate profits fall, and stock prices decline. That's when investors prefer the regular interest payments guaranteed by bonds.
