Why the stock market goes down

[statusquobuster]

Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

These are optimists and realists, while almost everyone selling stocks are the losers.

 

[wimpy77]

i agree with that i think long term that market will rebound but guys like cramer want it now.

 

[Toro]

Yeah, I agree with this. Valuations are at levels that haven't been seen in decades.

Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.

The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.

 

[dilloduck]

Intersesting--stocks go down because people buy them ?

 

[DavidS]

Intersesting--stocks go down because people buy them ?

I was going to say something, but I didn't want to be rude to the n00b. I've already gotten so many red reps for doing that...

 

[wimpy77]

Intersesting--stocks go down because people buy them ?

I was going to say something, but I didn't want to be rude to the n00b. I've already gotten so many red reps for doing that...

sometimes noobs need to be taught a lesson

 

[Immanuel]

Basically it is that age old... first thing you learn in econ 101... supply and demand. When more people want to sell the stock than want to buy it the price goes down. As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls. Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

Quite simple really.

The problems stem from trying to out guess the buyers and sellers.

Immie

 

[dilloduck]

Basically it is that age old... first thing you learn in econ 101... supply and demand. When more people want to sell the stock than want to buy it the price goes down. As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls. Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

Quite simple really.

The problems stem from trying to out guess the buyers and sellers.

Immie

please inform the noob

 

[xsited1]

Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

These are optimists and realists, while almost everyone selling stocks are the losers.

I wish I had taken your advice. I took my money out of the stock market when the DOW was around 13,000 (when the Democrats took control of Congress) and put it in bonds. Just imagine how much money I would have made had I kept buying stocks since 2007.

 

[editec]

Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

These are optimists and realists, while almost everyone selling stocks are the losers.

The rich can go long.

That's how they got rich and how they get richer.

 

[editec]

Most people I don't think really understand that the fundamental reason why or how the market goes down is this: BECAUSE SOME PEOPLE ARE BUYING THE FREAKIN STOCKS!!!!

Who are the people buying stocks that others want to unload? They are people who plan on making a killing when the market goes up as it surely will ----- eventually!!!!!

These are optimists and realists, while almost everyone selling stocks are the losers.

I wish I had taken your advice. I took my money out of the stock market when the DOW was around 13,000 (when the Democrats took control of Congress) and put it in bonds. Just imagine how much money I would have made had I kept buying stocks since 2007.

Yes, you'd be poised perfectly for that dramatic comeback.

Everybody likes a comeback story, ya' know.

 

[Immanuel]

Basically it is that age old... first thing you learn in econ 101... supply and demand. When more people want to sell the stock than want to buy it the price goes down. As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls. Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

Quite simple really.

The problems stem from trying to out guess the buyers and sellers.

Immie

please inform the noob

Inform me of what?

Immie

 

[dilloduck]

Basically it is that age old... first thing you learn in econ 101... supply and demand. When more people want to sell the stock than want to buy it the price goes down. As the sellers get more desperate they drop the asking price to a level that the next round of buyers is willing to buy at and the price falls. Eventually... hopefully... that changes and people who want to buy it outnumber those who want to sell it so the price rises as people who want to own that stock are willing to pay more for it and offer a price that someone else is willing to sell it for.

Quite simple really.

The problems stem from trying to out guess the buyers and sellers.

Immie

please inform the noob

Inform me of what?

Immie

yo Immie---how's your hammer hangin' ?

 

[DavidS]

Intersesting--stocks go down because people buy them ?

I was going to say something, but I didn't want to be rude to the n00b. I've already gotten so many red reps for doing that...

sometimes noobs need to be taught a lesson

You're still kind of a noob, but you're ok in my book. Not that my book is at all relevant...

 

[Burp]

Some say that the way the stock market moves shows the faith people have in that specific business (that goes up or down).

Or course, there are things that influence people's faith. Like, how the economy is going, what the person in charge is doing to help the economy recover.

Or what the person in charge is doing to keep the economy from flourishing.

 

[Immanuel]

please inform the noob

Inform me of what?

Immie

yo Immie---how's your hammer hangin' ?

You know, that has either got to be an allusion to the fantasy football team I had on another site, or I'm missing something here.

But generally, all is well with me Dillo or it would be if I could figure out how to turn the economy around.

Immie

 

[twogreen2c]

Yeah, I agree with this. Valuations are at levels that haven't been seen in decades.

Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.

The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.

If Obama gets his agenda pushed threw, our economy may be permanently damaged. The future isn't looking too good.

 

[Toro]

Yeah, I agree with this. Valuations are at levels that haven't been seen in decades.

Of course, stocks can keep going lower but I think owning stocks right here will pay off huge in the future.

The only reason why you wouldn't is because you think the American economy is permanently damaged, which is silly.

If Obama gets his agenda pushed threw, our economy may be permanently damaged. The future isn't looking too good.

No it will not. You dramatically underestimate the American people.

 

[wimpy77]

if you think this country won't survive then pack up and move the hell out.

 

[Immanuel]

if you think this country won't survive then pack up and move the hell out.

Does being concerned about the continuing viability of this nation mean that we don't love it? I am fearful that we cannot survive the way things are going. I am prayerful that we will. Only God knows how long our good credit can hold out.

Immie