Interpreting market indicators requires understanding the context in which they are used. For instance, a rising GDP usually indicates economic growth, while a declining GDP may signal a recession. However, it is essential to consider multiple indicators together. For example, high GDP growth with rising inflation could indicate overheating in the economy.
Similarly, in the financial markets, a rising stock market index generally signals investor confidence, but it is essential to look at other factors like corporate earnings and economic data for a comprehensive view.