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TIP437: Why Does The Stock Market Go Up? w/ Brian Feroldi
We Study Billionaires - The Investor’s Podcast Network
Why Does the Stock Market Sometimes Go Down?
The stock market is a live, continuous auction that's happening at any period of time. One simple way value companies is on a multiple of their profits. When we see something bad happening in the world, or we become fearful about that company's profits showing up, when reaction that people have is to sell their stock In anticipation of a decline in earnings. And that's why stock prices can sometimes dramatically decline. It's called a bare market.
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