Market votes
Great explanation of the recent swings on Wall Street here.
In short, there are fewer buyers in the market so when a stock is traded the price drops and the market swings:
"Markets depend on there being many offers to buy and sell a particular stock, across a range of prices. But as investors have gotten nervous, many of those offers have dried up. That is causing wider-than-normal gaps between prices showing where stocks can be bought and where they can be sold - the difference between the 'bid' price and the 'ask' price."
In other words, money is sitting on the sidelines. Why? Because across the globe, we have governments changing policy like we change a baby's diaper. Not good for economies. What was it Aristotle said: "Ideally, there should be few laws seldom changed."
The market votes.
In short, there are fewer buyers in the market so when a stock is traded the price drops and the market swings:
"Markets depend on there being many offers to buy and sell a particular stock, across a range of prices. But as investors have gotten nervous, many of those offers have dried up. That is causing wider-than-normal gaps between prices showing where stocks can be bought and where they can be sold - the difference between the 'bid' price and the 'ask' price."
In other words, money is sitting on the sidelines. Why? Because across the globe, we have governments changing policy like we change a baby's diaper. Not good for economies. What was it Aristotle said: "Ideally, there should be few laws seldom changed."
The market votes.
Comments