02-10-2011 04:53 PM
It would seem to make sense that when people are given more credit and spend more money, the companies selling the goods are doing better and their stocks go up.
My own outlook is that once I had gotten my credit cards in order, my focus shifted to put more money into my stock-based defined contribution plan for retirement.
Would companies prefer that you buy their goods or their stocks? They aim for your money either way. With stocks though, you get a considerable return.
I read that when a country's credit rating drops, its stock market follows. If a person's credit score drops, what's his equivalent of publicly issued stocks?
About credit and stocks, it can be said that by selling shares the companies get money without actually borrowing into debt. Sort of pre-statement card credit?
Sorry for the rambling, but I was just wondering.