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The cold hard truth about why stocks fall

News Summed Up 2018-12-06 05:30:00

Or maybe the movement in stock prices, in fact, has very little to do with that. But more likely those are triggering events than the underlying cause of the wild swings in stock prices - matches thrown on a pile of dried wood pile. Or put another way, the market is making the transition from people buying stocks because everyone else is buying them to selling stocks because everyone else is selling them. Whether justified or not, falling stock prices caused consumers and businesses to pull back on their spending, which will eventually cause the economy to slow, causing forward-looking stock prices to fall even farther today. And if we in the business press were being honest, the headline on the story that day would be the same as it was the day before, and the week before that:"Stocks fall because stocks fall."


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