Description
This article explains the connection between the share market and our economy, and how different variants influence each, often resulting in different outcomes.
Introduction
In recent times, the Australian economy faced potential challenges, including elevated interest rates and inflation levels, which led to concerns about a recession as 2022 commenced. This prompted speculation about the potential impact on the share market, raising the question of whether it might also experience a decline.
However, historical trends offer a different perspective. Throughout various periods, including instances of economic contraction, the Australian share market has demonstrated resilience. Notably, during each of the country's previous nine recessions, the local market managed to trade at higher levels.
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