2006-06-13 13:11:02 · 2 answers · asked by bonedog78 1 in Business & Finance ➔ Investing
Primary reason? There's rarely just one reason.
What was the reason for the stock market crash in 1929? They're still writing about it and coming up with reasons.
What is the reason for fluctuation in prices? In the short term, it's human emotion, primarily fear and greed. In the longer term, it's supply and demand.
You listen to too much media hype, and actually think you are informed and just missed a show or something, like someone really has "THE" answer. I meet investors that read the Wall Street Journal cover to cover and think they are informed.
The stock market is a predictor of the economy six months from now. And six months from now, they will have figured out what happened today. But right now, nobody has a crystal ball.
You don't have to know "Why" or "What" or "the reason." I would say you can't possibly know that. You ask ten economists or traders, or "experts" and you'll get 11 answers. What good will that do you? You going to make decisions based on a newscaster? Just follow the price and volume of the here and now.
Sometimes there are no reasons. The market goes where it wants.
2006-06-13 13:34:43 · answer #1 · answered by dredude52 6 · 0⤊ 0⤋
Core inflation is up, so interest rates must rise to keep this in check.
2006-06-13 13:15:04 · answer #2 · answered by peanutzz52 3 · 0⤊ 0⤋