Sight to Insight

The graphics showed the 10 years GDP growth and the stock market index of the countries in Asia Pacific. Here is a GDP definition. Gross Domestic Product is the total market value of all final goods and services produced in a country in a given year, equal to total consumer , investment and government spending, plus the value of exports, minus the value of imports. Few countries will have double digits growth, save for China and some emerging countries. However, Singapore is an exception. The diagram nevertheless showed zig-zaggy change for most countries. By contrast, the stock market indices grew by multiples in all the countries. Is there a correlation between GDP growth and stock market performance? You will have to interpret it, and more likely, you will need additional data to make some sense out of it. The fact is that if you have invested in an index fund that tracks the index, you will be very comfortable with your gain. When I first was made aware of ETF (Exchange Traded Fun...