Stimulus, Savings, and Stocks

03/06/2009 Mark A. Pribonic

As the president signs the trillion-dollar stimulus package into law, financial networks are abuzz with investment pundits speculating on what companies will benefit, and thus what stocks should be purchased. Such analysis makes an error of causality commonly found in equities research. It assumes a direct correlation between business activity and stock prices, writes Mark A. Pribonic.

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