2007-11-29 12:41:03 · 6 answers · asked by radha g 2 in Business & Finance ➔ Investing
Because it anticipates rather than reacts, presaging the real economy by 3-6 months.
2007-11-29 14:44:53 · answer #1 · answered by Anonymous · 0⤊ 0⤋
A thermometer measures temperatue (i.e. heat). Heat is the random movement of molecules. The more movement, the higher the thermometer reads. However in a chaotic marlet there can be a lot of movement with the market going down. (i.e. When the stock market crashed in 1929, there wasa ton of movement... selling.
A barometer measures pressure. You pour more and mre money into the market (buying shares) and the pressure (values) goes up. If you relieve pressure (take money out), the market goes down.
That said, this is a pointless analogy.
2007-11-29 20:50:03 · answer #2 · answered by Peaches 4 · 0⤊ 0⤋
barometer:
2. Something that registers or responds to fluctuations; an indicator: Opinion polls serve as a barometer of the public mood.
and stock market fluctuates.
2007-11-29 21:10:12 · answer #3 · answered by wei528 2 · 0⤊ 0⤋
A barometer measures pressure. The stock market reflects the economic pressures (inflation, deflation, recession, good earnings, adverse earnings...) our of economy. There are other pressures that affect the economy as well.
Thermometers measure temperature.
2007-12-01 00:32:21 · answer #4 · answered by !!! 7 · 0⤊ 0⤋
Actually it's neither. The stock market is a leading indicator.
2007-11-29 20:52:34 · answer #5 · answered by john p 3 · 1⤊ 0⤋
Because the prices are affected by pressure and nothing scientific
2007-11-29 20:53:05 · answer #6 · answered by thenarcolepticone 3 · 0⤊ 0⤋