Stock markets are in a bear market, or pretty darned close to a bear market. When stock prices are changing rapidly, typically falling or crashing, what that represents is a broad based feeling that the profits of those companies take a sudden and dramatic turn for the worse. And that fear causes investors to fear that prices are going to fall. That causes other investors to become fearful that prices areGoing to fall. So it's just common features of markets, but they always represent investors emotions, broadly based, suddenly turning negative.
#369: To answer these questions, we need a deep, tree-trunk understanding – a core, fundamental understanding – of how the stock market operates.
What, exactly, IS a stock – and how are stocks valued? What’s the difference between the Dow Jones, the S&P 500, and the Nasdaq? Why is the market a voting machine in the short-term, but a weighing machine in the long-term?
Brian Feroldi, the author of “Why Does the Stock Market Go Up?,” joins us for a Stocks 101 explainer episode.
If you’d like a deeper understanding of the world of stocks, you’ll enjoy this explainer episode.
And if you have a friend/spouse/coworker who’s said, “I need to learn more about investing,” share this episode with them.
Enjoy!
For more information, visit the show notes at https://affordanything.com/episode369
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