It depends on your timeframe. Over the long haul (e.g., years), the stocks of companies that perform exceptually well will tend to outperform the general market, while stocks of companies that don't will tend to perform worse. Since the market itself tends to rise over time, the stocks of well run companies tend to rise at a better rate, while those of poorly run companies tend to rise slower, remain flat, or possibly even fall.
For the short term (e.g., days, weeks, to possibly a few months), there are a lot of other factors can affect individual stocks or the market as a whole, including current news, rumors, interest rates, the economy, the overall perception of the market, and the performance of the related sector as a whole.
2007-06-21 10:51:37
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answer #1
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answered by Anonymous
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How long a period are you looking at? and are you only looking at successful banks that still exist?
A LOT of savings and loans lost everything in the debacle in the late 80's/early 90's
You couldnt give away oil stocks to people in the late 90's .. everyone wanted tech.
sectors move in cycles based on a lot of economic factors and also media attention.
But as a scholarly line of thought i suppose if everything else remained constant about a company and the sector and the media and all.... the stock should rise along with inflation as they pass costs along and money becomes worth less.
2007-06-21 18:42:22
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answer #2
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answered by Ryan S 3
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Yes as long as they expand money supply the way they have done in the past year. I think the general market will continue to rise.
2007-06-21 21:12:41
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answer #3
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answered by scow_sailor1692 3
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We have a tendancy to assume that "short term" trends (say 10/20 years) represent the future. They rarely do.
Business never goes 'as usual'.
Risks and returns are correlated normally.
2007-06-21 17:20:44
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answer #4
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answered by madgooner 4
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Depends on assetts of the company, sale and purchase volumes of the shares, and so forth.
2007-06-21 17:17:54
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answer #5
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answered by Mike Frisbee 6
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Maybe. Maybe not. I'm sure it will be either one!!!!
You'll get plenty of other ideas on Yahoo Answers from people whose qualifications you can't verify & whose motives can't be known. Good luck with that.
2007-06-21 19:13:45
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answer #6
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answered by Common Sense 7
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No.
2007-06-21 17:22:27
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answer #7
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answered by Anonymous
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