Very often, after an up day in the stock market, reporters will say "stocks rose on the expectation that interest rates will fall."
Or alternatively, after a down day in the stock market, reporters will say "stocks fell on the expectation that proposed legislation will cut into corporate profits."
Isn't this all idle speculation? Millions of transactions made by anonymous individuals/funds drive the market. These decisions to buy or sell will be based on factors unique to the buyers and sellers, factors not necessarily apparent to financial reporters.
Question: Should we pay attention to such after-the-fact analysis?
Strider
Or alternatively, after a down day in the stock market, reporters will say "stocks fell on the expectation that proposed legislation will cut into corporate profits."
Isn't this all idle speculation? Millions of transactions made by anonymous individuals/funds drive the market. These decisions to buy or sell will be based on factors unique to the buyers and sellers, factors not necessarily apparent to financial reporters.
Question: Should we pay attention to such after-the-fact analysis?
Strider
Statistics: Posted by Strider — Thu Feb 01, 2024 9:26 pm — Replies 2 — Views 151
