Quote:
Originally Posted by Alex
Why should U.S stock holders worry? Our stock market wasn't overinflated neither did anything change with any of the large corporations. People panicked, that caused stocks to fall.
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Perhaps you didn't know but what a company is doing/was doing/will do in the future is basically irrelevant to the price of their stock. Their stock price is determined by two factors, greed or fear. People drive stock prices, not corporate changes. You have to be ahead of the herd to win, but if you think the herd mentality doesn't matter in the stock market, you're way off. What the herd thinks is all that matters. Why do you think all analysts always have basically the same recommendations? Every one is afraid to go against the herd. Their jobs are on the line. The herd is influenced by many factors, but what the companies are actually is not very relelvant. They could be a shit ass company and still be worth quite a bit, just because enough people that it should be that way.
I could be wrong, but I doubt it...
