Aug
08
Why does the news seem to affect the stock market more now than in the past?
Filed Under (Investing) by admin

Curious George asked:


When bad news hits, the market drops significantly. We already know about the mortgage problems, that the banks are hurting and so forth, yet when this is on the headlines, people panic. What’s the deal?

JOSH

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Comments

me on 9 August, 2008 at 10:47 am #

? misschien meer mensen zijn te investeren in haar en ze zijn ze meer van hun geld in. ze zijn nog vele andere redenen. Enron heeft mensen nerveus over de grote bedrijven en een recessie maakt mensen nog springerig. Wanneer ze zien slecht nieuws kunnen ze in paniek en proberen snel handelen om het verlies van te veel geld.? misschien


Nick Z on 9 August, 2008 at 7:57 pm #

Perhaps the economic news are now more bad than before.

And it’s not just the headlines that affect the stock market. Companies are now reporting their earnings and/or losses. And stock traders are watching these earnings reports very closely.

Citigroup has recently reported a $10 billion loss in the fourth quarter. And that’s not the kind of loss any self-respecting stock trader can scoff at.

Some other companies may be hiding big losses like that too. But eventually these companies will have to come clean. And that’s what the stock traders are afraid of.


jueyanz on 10 August, 2008 at 4:40 pm #

Más de capital está desplegado en el mercado por parte de inversores institucionales usando algoritmos genéticos. Básicamente, el mismo programa le dice a cientos de bancos a vender al mismo tiempo … la creación de salvajes oscilaciones en el mercado.