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The Stock Market Is Making a Comeback. Was It Something the Fed Said?

01/20/2019

Summary

During Q4 of 2018, many companies reported revenue loss and yet stock prices for many continued to rise at the start of 2019. It's possible that, although the US economy is still strong, there are a few factors like the trade war with China, the slowing of other large international economies, and the government shutdown that can reverse that stock market. Luckily, the current outlook is positive and this is attributed to the Federal Reserve slowing their constantly increasing interest rates.

Key Points

  • Despite many companies reporting loss of revenue at the end of 2018, the stock market continues to improve
  • Although the current situation seems positive, the future seems uncertain
  • The Federal Reserve has supported the positive stock market by slowing their plans of increasing interest rates

Discussion Questions

  • Why would a company have rising stock, yet falling revenue?
  • What major events could have significant impacts on the stock market in the coming year?

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