Are There Hidden Economic Forces Driving The Economy?

Today's video was first published on YouTube in November 2010 and discusses - amongst other things - quantitative easing.

Please don't think that the key thing to remember from this video is the politics, the bashing of Goldman Sachs, or the working of quantitative easing. The lesson from today is to recognise that the world economy is often driven by forces that do not seem to make sense or be very transparent.

In theory, stock prices rise and fall relative to the value and profits created by a company and the demand for stock in the market that those profits create. That is the theory...

The practice also involves a wide range of other factors - at least for the larger companies - that we investors ought to understand.

Whether you believe in conspiracy theories or not, it would be unwise to ignore the general economy when making an investment. Investing with the wind in your sails (a growing economy) is much easier than when your boat has a hole in it (a failed business model for example).

Please ignore the fact that this is a cartoon. It has been watched almost 5 million times and has - at the time of writing - received over 17,000 'thumbs up' ratings.