HFA Icon

How A Weakening PE Market Serves As Another Sign Of A Weakening Economy

Michelle headshot
Michelle deBoer-Jones
Published on
Sign up for our E-mail List and Get FREE Access to Exclusive Investment E-books and More!

Amid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment.

A closer look at PE reveals that the industry often serves as a leading indicator of where the economy might be moving. It tries to anticipate economic changes using data and intelligence on how private companies are doing. Financial analysis of these companies and discussions with senior executives working in multiple parts of the economy often provide further insight into the economy’s potential near-term future.

Q1 2022 hedge fund letters, conferences and more

Invest

Michelle headshot

Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.