Investing in the Stock Market

The key lies in the fact that investors are capable of interpreting virtually any piece of news either positively or negatively, depending on how it's reported and on their mood. People who haven't spent much time watching markets may believe that asset prices are all about fundamentals, but that's certainly not so. The price of an asset is based on fundamentals and how people view those fundamentals. Company fundamentals are theoretically subject to something called analysis and possibly even prediction. On the other hand, attitudes regarding fundamentals are psychological, emotional, not subject to analysis or prediction, and capable of changing much faster and more dramatically. It takes longer for things to happen than you thought it would, but then they happen much faster than