Consider the chart below comparing the FTSE 100 and the Nikkei performances. Both have economies that as best could be described as moribund but the Nieekei has been motoring.
The trap for investors and traders is that they assume that it is the economy that drives the market as such they hang off every economic pronouncement in the belief that if they know something about the economy then they can make a profitable investment decision.
Nothing could be farther from the truth.
