Sometimes the news reports that the stock market is acting goofy because much of the stock market is controlled by computers that are trading stocks automatically. Well the stock market is taking a digger, but how do the computers know anything about the coronavirus, and even if they did why would they think it is a bad thing for stocks? Why is the stock market falling at all? The whole "computers are in charge" thing is smoke and mirrors. The fact is that people, and more importantly, how people "FEEL" is what is in charge of the stock market. The stock market is simply a reflection of how good the right people feel. If the right people are nervous then stocks stall or fall slightly. If these same people feel great, the stock market takes off for the moon. It has a tiny bit to do with how companies are actually doing, but mostly to do with how the big boys and girls in the sand box feel.
.
No comments:
Post a Comment