Too often, people and bonehead politicians equate the stock market with the economy. They should not do this, the stock market does not equal the economy. Capital markets do not equal economies.

For instance in the United States, a large portion of GDP output and the majority of GDP growth is attributed to small businesses and other businesses that are not publicly traded.

GDP or Gross Domestic Product is one of the numerous measures of the economy

There is a relation between economic cycles and market cycles, but they certainly do not align perfectly. Recessions do not automatically lead to bear markets, bear markets do not automatically lead to recessions. The same can be said about bull markets and economic expansions.

The relative strength of the economy is very subjective, and therefore a perfect weapon for politicians and their rhetoric.