Old Economy

What is 'Old Economy'

A term for the old blue chip industries that enjoyed fabulous growth during the early parts of the century as industrialization around the globe, and particularly in the United States, expanded. Since the new economy has arrived, old economy companies have still experienced growth, but at a declining rate.

BREAKING DOWN 'Old Economy'

The old economy contrasts with the new economy, where technological innovation is key. Although old economy firms have been changed dramatically by technology, there is a limit to how much technology can continue to improve the industry.

Industries that are commonly considered to be involved in the old economy are energy, steel, and automobile manufacturers.

RELATED TERMS
  1. Blue Chip

    A nationally recognized, well-established and financially sound ...
  2. Growth Industry

    A sector of the economy experiencing a higher-than-average growth ...
  3. Economy

    Economy is the large set of inter-related economic production ...
  4. Blue Chip Indicator

    A formal gauge or measure of the performance of a selected group ...
  5. Sluggish Economy

    A state in the economy in which the growth is slow, flat or declining. ...
  6. Generic Securities

    A security backed by recently issued loans or mortgages. Its ...
Related Articles
  1. Markets

    Which Countries Will Drive Global Growth in 2016?

    Given the volatility that has already shaken the global economy, the world's largest economies will be leaned on to stimulate growth in 2016
  2. Investing

    This Blue Chip Is Up 16% Since January -- Is It Still A Buy?

  3. Markets

    These Will Be the World's Top Economies in 2020

    Discover the current economic forces that are anticipated to significantly shift the landscape of the world's most powerful economies over the next decade.
  4. Managing Wealth

    What does "Blue Chip" Mean?

    Describing a business as “blue chip” comes from the game of poker, where blue chips are the most valuable.
  5. Markets

    Four Factors Supporting the Global Economy in 2016

    The global economy enters 2016 on a promising note, with the growth pace forecast to be the fastest since 2011, thanks to a combination of four potent factors.
  6. Markets

    Great Company Or Growing Industry?

    Look at the big picture when choosing a company - what you see may really be a stage in its industry's growth.
  7. Markets

    The 5 Industries Driving the U.S Economy

    Jobs are being created by the millions, wage growth is picking up and foreign trade is only 30% of the nation’s GDP.
  8. Markets

    3 U.S. Equity Market Trends in 2016 (SLX, SPY)

    Learn about three U.S. equity market trends that are impacting stock prices. How these trends resolve will determine winners and losers in the stock market.
  9. Markets

    Jobless Growth: Are You Prepared?

    Economic growth doesn't always mean employment growth. Learn about how the jobless growth economy affects workers and investors.
  10. Markets

    Risk and Reward In Emerging Market Economies

    An emerging market economy is one that’s progressing into an advanced economy.
RELATED FAQS
  1. What are some advantages of a market economy over other types of economies?

    Learn what a market economy is, the main assumption behind a market economy and some important advantages a market economy ... Read Answer >>
  2. How can I get my profit sharing money from a company that I can't find anymore?

    I worked for a company and when I left in 1988, I did not receive any money from them. In 1988, the balance was $9,826.87 ... Read Answer >>
  3. To what extent can a government intervene in a market economy?

    Find out at what point a market economy receives so much government intervention that it can no longer be considered a market ... Read Answer >>
  4. How do I withdraw from an old Roth 401k still sitting at old job?

    I am looking to buy my first home. I have an old Roth 401k that started 5 1/2 years ago...I contributed for about 3 ... Read Answer >>
  5. What economic indicators are important to monitor when investing in the electronics ...

    Learn about what economic indicators are best to examine when investing in the electronics sectors. This group is very leveraged ... Read Answer >>
  6. Why is the U.S. stock market doing well despite the recent U.S. economic downturn?

    The U.S. economy is one of the largest and most important economies of the world. With the continual growth of its GDP, the ... Read Answer >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center