How can the stock market keep jumping and remain high based on information that never happens? ?

Question

I don't get how the stock market remains high on info that doesn't pan out, nor how the stock market could fair so well when society is having a hard time.

I understand that businesses could layoff and that the tax cuts helped, but I am surprised that the stock market isn't crashing hard. I know people invest in select areas that are doing good, but can the stock market stay so high during touch times for so long? If people aren't buying as they used to, how can it remain high?

When people say the stock market is rallying under [blank], are they really investing because of [black], or are they just investing in the stock market since it's climbing and they need money?

Take Care, With Love Through God and Jesus and The Holy Ghost,

Anonymous · Answer

Minton block digital asset investment fund https://mintonblock.com

Rahul · Answer

I suppose what you mean is how the stock prices keep changing based on market predictions that do not match the market conditions. So, the market does not entirely depend on one factor. It is many factors, including demand and supply, that will affect the stock market and the way the prices move.

However, it is important to note that the demand and supply for a stock are the main reasons why stock prices go up and down. Stocks of a particular company that are deemed lucrative by investors can have high demand, and hence the prices of such stocks can rise and stay high as long as the demand for them lasts.

Even when the times are bad, the stock market could be doing well as long as some companies are in a position to keep going. For examples, companies and sectors whose products and services are still in demand, even during a pandemic or an emergency will continue performing well even if they lay off employees.

That is why I said that the stock market does not depend only on one or two factors. And the prices can be influenced by market forces that go beyond simple demand and supply.

StephenWeinstein · Answer

Because there are enough investors who buy stock and don't sell it.  The market doesn't listen to the news.  It just moves up when there is more stock buying and down when there is more stock selling.

Richard · Answer

The price of a stock is often governed by the confidence people have in the company and the general economy.  It is evaluated more by emotion than fact.

? · Answer

The U.S. stock market is not going to burst in a big way. Is that something you should be worried about? As far as things are concerned, if the stock market bubble bursts it will cause a chain reaction, which is not allowed by the authorities.The risk of an investment is greater than the profit.

Anonymous · Answer

The stock market is above your head. Its above mine too and i have been investing 35 years.

Anonymous · Answer

Stock market movement is complex. The general direction is longer term outlook even if daily news causes daily movement. Most of the money is owned by rich people and they own most of the stock also. They are not as affected by COVID-19 than the general public. Companies buyback their own shares to boost prices so executives get bigger bonuses in stock option values. Where can money be put? Bond yields are at historic lows. That makes stocks more attractive. Certain stocks drive the market averages more than others.
Apple, Amazon, Microsoft, Facebook, and others have gone up a lot. And, it's tough to know when a bubble will burst.

How can the stock market keep jumping and remain high based on information that never happens? ?

7 Answers