News Column

1Wealth Solutions: Stock Markets, Overall Economic Health Not Directly Related

May 7 2013 12:00AM



SYDNEY, AUSTRALIA -- (Marketwired) -- 05/07/13 -- According to the stock market gurus at 1Wealth, there is not always a close, direct, or linear connection between the overall health of the economy and the trajectory of the stock market. The company illustrates this important -- and, for some, counterintuitive -- point by highlighting a recent article from The Houston Chronicle. The article contends that, while the overall economic climate is far from unimportant, it is not nearly as important to the trajectory of the stock market as many investors assume that it is. In a recent interview with 1Wealth General Manager, Martin Campbell, he commented on this important topic.

"There is definitely a disconnect between the economy and the stock market," remarks Campbell from 1Wealth. "A good example is to look at the 25 years preceding 2006, in which China's economy was growing at around 1 percent while its stock market grew at around 3 percent; in the same period, Brazil's economy was growing at 3-4 percent, but its stock market grew at 10-11 percent." The bottom line, according to 1Wealth? "The performance of the economy is not a direct reflection of stock market performance."

The company continues its statement by noting that this is ultimately good news for investors. "The good news is, despite what the economy is doing, you can still make good returns on the stock market if you know how to spot opportunities," says 1Wealth. "Our program finds shares that will perform regardless of external conditions. During the two worst months of the recent recession, 1Wealth clients made average profits of 23.2 percent and 24.6 percent respectively."

These investment performances speak to broader economic realities, continues 1Wealth. "That's a pretty clear indication that even when the economy is going backwards, the stock market can still provide significant returns. The key is knowing where to look. Our program analyzes thousands of stocks daily to pinpoint the best opportunities for investment. We buy individual stocks, not the market as a whole."

The Houston Chronicle article stands in agreement with these observations from 1Wealth. The article's argument is that, while the stock market and the economy sometimes move in the same direction, they are not necessarily closely connected. The stock market is driven largely by changes in corporate earnings, the article notes, and it is less motivated by what has previously happened than what lies on the horizon.

1Wealth is a company that provides online stock trading options for investors around the world. By using 1Wealth Solutions, investors can accumulate revenues to last a lifetime, spending only a few minutes each day managing their portfolios.


1Wealth Solutions offer a program designed to offer maximum accuracy and efficiency to corporate and individual stock traders. The company is part of the One Financial Group and has blossomed into an international company, with its trading hub in Sydney and offices spread across countries all over the world. The mission of 1Wealth Trading Solutions is to provide investors with the technological tools and financial strategies they need to generate consistent stock market revenues, and ultimately to generate lifelong wealth.

Source: Marketwire

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