What makes the stock market go down on good news?
Public Comments
- Everything is discounted in price. Stockprice moves on expections and not on results.
- Many investors think, "ok, this could be the tip of the iceberg, I better cash in my winnings while they are at this level." Then, a million investors, think exactly like that, suddenly.....free fall in the market.
- I wish I knew. I have 401K and im sick of loosing money and I have no option of cashing out since it's with my employer!
- The answer may be here.
- people were expecting better news, perhaps? or there was great news the day before and people are cashing out.
- whole world runs as USA is preaching as its said in USA buy at rumours and sell at news that's why when their is news, price start falling because it has already accounted the rise, and when the news is out th euphoria is gone their is no suspense.
- Happy people buy less - it's the panacea syndrome.
- Often people sell on good news to take their profits. When too many do that the market turns down. Everytime I think I know what to expect the market does the opposite. It's crazy. But one thing I have mastered... buy high and sell low :-)
- Quarterly earning reports of fortune 500 companies!
- The stock market tends to go down on any news, good or bad, that creates a sense of uncertainty. This used not to be the case as much when stocks were traded mostly by institutional investors with a solid understanding of business and economics. Now that we have a large investment class in this country, there is more volatility because there are so many people in the investor class who really do not understand business or economics very well and they tend to get "spooked" more easily. May God bless and keep you.
- Fears of inflation, stocks overpriced, profit taking, or interest rate hikes. These situations cause people to have less money to spend or they are speculating on a stock to make money.
- There's a saying in the markets. Buy on the rumor, sell on the news.
- The market it not entirely rational. Some people refer to it as "Mr. Market". Mr. Market is just like anyone else with emotions. Sometimes good things seem bad, and sometimes bad things seem good. There's some logic behind it, but often it is simply emotional.
Powered by Yahoo! Answers