Friday, November 26, 2021

21. Possible reason why the stock market rises over the long term




Consumer spending is one of the key components in the growth of an economy, most countries including the Philippines see at least a 60% contribution (see explanation of consumer spending in the Economic Indicators page)

Looking at the stock market as a venue to purchase business catering to this growing number of consumers, it follows that as consumption increases with the increase in population, the share price of these "listed" businesses grows as well




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