One variable that analyst can follow to predict the impact of the economy on stock...
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Finance
One variable that analyst can follow to predict the impact of the economy on stock prices is excess liquidity. If the economy has excess liquidity, the money is likely to be spent on financial assets and raise their prices. Excess liquidity is measured by (money supply x velocity of money) minus nominal GNP O growth rate in money supply level of current money supply minus average money over last two years O growth rate in money supply minus growth rate in nominal GNP
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