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What MOVES the Stock Market? The answer might SURPRISE you
There are two factors that Moves the stock market in short term and long term, this two factors can cause consolidations, stock market bubbles and stock market crash, Before we continue please know that this factors has nothing to do with Trend lines, trading indicators and economy
Is the Stock Market and the economy correlated? We can say No and Yes, The Stock Market does not react towards the economy is doing, but it reacts to what Investors are doing, and investors reacts towards the economy is doing and this can only affect the stock market in a short term. It sounds a little bit complicated but let’s try to Iron it for you
Lets take a look at the typical example that happened during Corona virus crash when the economy started to shrink. In March 2020, the market was a bit shaken for a month but then something strange happened, even as 100 of thousands of lifes where lost, millions of people were laid off and thousands of business went bankrupt, There was protest against police violence across the nation in the wake of George Floyd murder and the out going president refuse to accept the outcome of the 2020 election, supposedly the market's nightmare scenario for weeks the stock market crashed after the jobs report from april 2021 revealed a much shakier labor recovery might be on the horizon major indexes hit new highs
Why did the market crash for only a few weeks and recover even when the economy was still weak from all those factors happened during the coronavirus? All this happened because when the economy became weak investors began to sell their shares
DISCLAIMER:
This channel is for educational purpose only. All videos, presentations and writing are for only educational purposes, and are not intended as investment advise
You can implement this while investing at your own risk and after consulting your financial advisor.
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