Pandemics and Globalization: Do Stock Market Indices Correlate with Prominent Economic Indicators in Accurately Reflecting the State of the Economy?

POSS Team: DBPC Research Team (India)

Synopsis: The study looks into the efficacy of financial markets in tracking economic indicators to reflect on the trends of the global economy. By utilizing a multi-factor methodology, it analyzed historical data, compared it with trends emerging from other indicators such as unemployment, poverty, etc., thereby accounting for the effects of modern financial strategies and policies, as well as economic theories in the context of expected outcomes and changes. The study concludes that financial markets remain track underlying economic fundamentals, and that gains in the markets during the pandemic are supported by government actions and other financial measures which have cushioned the economy.

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