Economy (master) and stock market (dog) is similar to master walks the dog, now dog is behind the master who is walking faster. When both master and dog are slow, then it will be a concern, regardless who is ahead
There are 2 relative positions (behind/ahead) with 2 overall paces (fast/slow) with 4 scenarios of economy vs stock market:
(1) Bullish market – master (economy) could be ahead/behind stock (dog), while both are walking at faster rate
(2) Bearish market – master (economy) could be ahead/behind stock (dog), while both are walking at slower rateeconomt
Now could be scenario (1) bull market with economy ahead of stock market but if the dog is too slow until the master is also slowed down, it could become scenario (2), turning from bullish to bearish.
Learn how to position in these 4 scenarios of economy vs stock market, register for free course by Dr Tee.
