The researchers at IAAI have forecast positive trends for both job creation and consumer confidence. Which,...

The researchers at IAAI have forecast positive trends for both job creation and consumer confidence. Which, if either, of these trends should have a positive effect on stock prices?

Solutions

Expert Solution

A positive tendency in the job creation is a chief imeasure of increased economic activities. More jobs would probably produce more employment, which in turn would result in more expenditure, savings and investment. A positive prediction in job creation tendency and consumer confidence is good indicator for the firms and household of that economy. Hence, job creation is certainly correlated to earnings, expenditure, savings and investment which actually affect stock prices in a positive manner.

Consumer confidence has also same effect as job creation. Consumer confidence results to an increase in demand of goods and services by the individuals and to meet demand more production will be required. And thus, there is a growth in economic cycle because more investment to produce more products works as fuel. Hence, it is also positively correlated with stock prices.

Both job creation and consumer confidence has positive impact on stock prices.

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

Researchers think that there are both positive and negative effects of social media on teenagers and...

Researchers think that there are both positive and negative effects of social media on teenagers and young adults. Please respond to both questions. 1) What are the positive and negative impacts on adolescent health of cell phone and social media technologies? 2) How can electronic media enhance the health and well-being of adolescents?

Which of the following is true of the early stages of a recovery? a. job creation...

Which of the following is true of the early stages of a recovery? a. job creation is rapid but the unemployment rate stays high b. job creation is slow and the unemployment rate stays high c. job creation is rapid and the unemployment rate falls quickly d. job creation is slow, but the unemployment rate tends to fall very quickly Which of the following statistics does the general public usually watch closely in order to assess or determine how the...

The emerging trends in Procurement and Supply chain continued to create both positive and negative effects...

The emerging trends in Procurement and Supply chain continued to create both positive and negative effects on global supply systems. Identify any five (5) emerging trends currently impacting on global procurement and supply chain system

Which is not true about savings? (The other options are true.) It falls when consumer confidence...

Which is not true about savings? (The other options are true.) It falls when consumer confidence increases, because that causes consumption to rise. When there is a wide-spread increase in the desire to save, the interest rate tends to fall. It is equal to Income - Consumption - Taxes. It rises when income increases and consumption does not change. It will shift up/right when people are given additional assurances that most of their retirement expenses will be paid for by...

Positive and Negative Reinforcement. How have you seen one or both of these used in an...

Positive and Negative Reinforcement. How have you seen one or both of these used in an organizational setting? Discuss the extent to which it was effective.

The cash flow from operations and cash flow from investing are both positive. Which of the...

The cash flow from operations and cash flow from investing are both positive. Which of the following best describes the situation? 2004 2005 Net income $189 $170 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 201 173 Deferred income taxes 14 (20) Restructuring charges 80 90 Accounts receivable 30 20 Inventory (30) 50 Current liabilities 10 30 Cash flow from operations 494 513 Sale of equipment 200 300 Purchase of equipment (130) (120)...

Consider a commodity market in two economies of comparable sizes. Both economies have positive production and...

Consider a commodity market in two economies of comparable sizes. Both economies have positive production and consumption of a commodity. Initially free trade exists between the economies. Explain how a non-prohibitive tariff imposed by the government of the importing country may affect the price levels in both economies. How will the tariff affect the welfare of the exporting country? Use diagram(s) to assist your answer.

1. What do you believe are some factors that have decreased consumer confidence? Do you think...

1. What do you believe are some factors that have decreased consumer confidence? Do you think this decrease is linked at all to the economy? 2. How can companies market themselves to improve consumer confidence and entice consumers to purchase more during this time? 3. Do you believe that consumer confidence could be inversely related to consumers' willingness to save? Meaning that if consumers are less willing to spend, they are more willing to save for retirement, payoff debt, etc.

(a) Discuss any four trends in the banking industry which analysts have dubbed “banking revolution”. ...

(a) Discuss any four trends in the banking industry which analysts have dubbed “banking revolution”. (b) Explain three main reasons why in evaluating bank’s performance Operational profit is usually not considered. (c) In preparing the statement of financial position of a commercial bank, the bank is expected to show three main components of the financial statement. (i) List two items that will reflect under each of the components (d) Outline four basic methods of asset management ...

How might taking vitamin pills have both positive and negative affects on your body based on...

How might taking vitamin pills have both positive and negative affects on your body based on your diet? What is your opinion of taking supplements? Your initial answer should be 500 words minimum. Reference at least two sites you visited on this topic (APA or AMA citation).

Subjects