Reforms, economy and stock market

It is interesting that investors in the stock market are often not overly concerned with reforms for credible returns

Economic reforms are useful for boosting the growth rate of gross domestic product and for economic welfare. That is what reforms are for. Now, it has been seen time and again that they affect stock prices too. But do they also positively affect long-term fundamental values of stocks? If no, then there can be considerable pain for investors as prices eventually revert to values. It is important to understand the whole issue.

There can be two types of economic reforms. The first type of reforms includes the initial setting up, and then the subsequent meaningful strengthening, of a regulatory body like