Categories: Stocks News

Why go up the bag

I remember years ago when he intervened in a radio program, the first thing I wondered is what I was going to make the bag that day. I came to the head the story of when a reporter asked, it is now more than 100 years ago, John Pierpont Morgan -one of the greatest bankers in history – the following:

“Mr. Morgan, what will the bag tomorrow?”. To which he replied: “Will fluctuate”.

But not only is that the behavior of the bag is unpredictable from one day to another, but many times it is difficult even to explain the behavior of the bag afterwardsdespite that you always read the explanations very sesudas on why the stock has risen or fallen that day, when many times the explanation is so easy as there was more interest buyer to seller or vice versa.

Many times the explanation of why the stock has gone up or down is as easy as that there was more interest buyer to seller or vice versa

These past few days have left us with several moments that show this, such as, for example, with the american elections. During the days leading up to the elections, the experts agreed (I among them) in that the worst possible scenario for the bag would be a result very tight that delayed knowing who would be the new president, to prevent taking any new measures of stimulus to the economy. This would lead to a sharp drop of the bags.

Well, on Wednesday morning, the european stock exchanges woke up with the most accurate results of the history and with the victory preferring moments between one and another candidate. In spite of this, the bag began to rise from the first momentending with one of the largest raises of the year, followed the next day by new uploads. In the media gave explanations varied, when the easiest explanation is that there was a lot of money waiting to know the result for the invest… to Be the one that was.

The results were much better than expected, and in both cases the shares to fall that day

A second example is in the results presented by the banks and the technological american. In both cases, the results in general were much better than expected, and in both cases the shares to fall that day. What explanation? The same as the previous one: there was a lot of money waiting to know the results for sell… they Were who they were.

As a summary, let me end with a quote from the best investor ever, Warren Buffet. “In the short term, stock markets are a voting machine. In the long term, are a machine of spite”.

***Antonio Blades is a member of Buy & Hold.

Ryan Helton

A Stock enthusiast since childhood, Ryan is known for his impeccable knowledge in the technology and gadgets niche. He has been working with eTrendy Stock as a contributor for most stock category and his articles are always well-researched and accurate.

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