April 25, 2025
At TMG, we often hear questions like:
“If the economy is doing well, shouldn’t the stock market be doing well too?”
The truth is the economy, and the stock market are not always directly connected. The market tends to move based on where investors think the economy is going, not just where it is today.
That said, economic data still plays a vital role in shaping market expectations. It offers clues about inflation, interest rates, consumer spending, and business activity; factors that help guide portfolio strategy and financial planning.
Here’s a simple breakdown of where this data comes from, how it’s collected, and how we use it to support your financial goals.
Where Does Economic Data Come From?
Economic and market data is collected by a combination of government agencies and private sector firms. These organizations track everything from prices and employment to manufacturing activity and retail sales.
How Is the Data Collected?
These organizations use a mix of surveys, digital tracking, and business reporting to gather their data:
Most of this data is released monthly or quarterly and is watched closely by economists, market analysts, and advisors.
Why this Data Affects the Market
Markets respond to expectations. If economic data shows inflation is rising faster than expected, it may signal that the Federal Reserve will raise interest rates, which can impact stocks and bonds. If job growth slows, the Fed might lower rates to stimulate the economy, which can boost markets.
While the market doesn't always follow the economy perfectly, economic reports act as early signals. Investors adjust their positions based on what they think will happen next.
How TMG Uses This Data
We monitor economic data closely to:
• Anticipate potential risks and opportunities.
• Adjust investment strategies based on inflation or rate trends.
• Help clients plan around the economic cycle.
• Stay ahead of market volatility, not behind it.
We don’t try to time the market. Instead, we focus on making smart, informed decisions that support your financial well-being.
Ready to Feel More Confident in Your Financial Future?
Let’s have a conversation. We’re here to help you stay informed, prepared, and empowered to make smart decisions, no matter what the market brings.
This is Why-powered wealth management. We don’t just respond to headlines, we proactively build comprehensive financial plans designed to withstand volatility and adapt to change. By leveraging real-time economic data, extensive investment and planning expertise and forward-looking insights, we help you stay focused, make confident choices, and move toward your goals with clarity and purpose.
Need more help?
Contact The Mather Group, your advisor, health insurance professional, or your state’s health insurance assistance program (SHIP) for additional information. SHIP is a national program that offers one-on-one Medicare counseling and assistance to individuals and their families.
At TMG, we often hear questions like:
“If the economy is doing well, shouldn’t the stock market be doing well too?”
The truth is the economy, and the stock market are not always directly connected. The market tends to move based on where investors think the economy is going, not just where it is today.
That said, economic data still plays a vital role in shaping market expectations. It offers clues about inflation, interest rates, consumer spending, and business activity; factors that help guide portfolio strategy and financial planning.
Here’s a simple breakdown of where this data comes from, how it’s collected, and how we use it to support your financial goals.
Where Does Economic Data Come From?
Economic and market data is collected by a combination of government agencies and private sector firms. These organizations track everything from prices and employment to manufacturing activity and retail sales.
How Is the Data Collected?
These organizations use a mix of surveys, digital tracking, and business reporting to gather their data:
Most of this data is released monthly or quarterly and is watched closely by economists, market analysts, and advisors.
Why this Data Affects the Market
Markets respond to expectations. If economic data shows inflation is rising faster than expected, it may signal that the Federal Reserve will raise interest rates, which can impact stocks and bonds. If job growth slows, the Fed might lower rates to stimulate the economy, which can boost markets.
While the market doesn't always follow the economy perfectly, economic reports act as early signals. Investors adjust their positions based on what they think will happen next.
How TMG Uses This Data
We monitor economic data closely to:
• Anticipate potential risks and opportunities.
• Adjust investment strategies based on inflation or rate trends.
• Help clients plan around the economic cycle.
• Stay ahead of market volatility, not behind it.
We don’t try to time the market. Instead, we focus on making smart, informed decisions that support your financial well-being.
Ready to Feel More Confident in Your Financial Future?
Let’s have a conversation. We’re here to help you stay informed, prepared, and empowered to make smart decisions, no matter what the market brings.
This is Why-powered wealth management. We don’t just respond to headlines, we proactively build comprehensive financial plans designed to withstand volatility and adapt to change. By leveraging real-time economic data, extensive investment and planning expertise and forward-looking insights, we help you stay focused, make confident choices, and move toward your goals with clarity and purpose.
Need more help?
Contact The Mather Group, your advisor, health insurance professional, or your state’s health insurance assistance program (SHIP) for additional information. SHIP is a national program that offers one-on-one Medicare counseling and assistance to individuals and their families.
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