Is country stocks market is good indicator of its economy?

Back in the middle of 2014, the stock market was rising through the roof. But the number-crunchers at the Bureau of Economic Analysis said the economy was shrinking, at a rate of 2.1 percent. Six months later, it's 2015. The BEA says the economy is growing at a rate of 5 percent. But the stock market is tumbling. Why is there so much difference between the stock market and the economy?

 

trying to rationalize an irrational market has lost many people a lot of money

 

There is zero correlation (on a 12 month basis) between GDP growth and stock market returns.

 

The stock market is just the line on the game. It goes up when most betters are betting on an improving economy.