Does financial turmoil lead to lower stock prices?

Posted by admin on December 23rd, 2009 and filed under stock prices | 2 Comments »

Since buyers face additional risk by putting their money into stock market, is this what causes stock prices to be lower? Or is it more complicated?

In the short term, people tend to lose confidence when their personal view of the universe gets shaken. Investors tend to lean on gold, and other commodities rather than equity. I know it’s dumb, but it is a fact.

2 Responses

  1. Trader Says:

    the main reason stocks are going lower is those bloody hedge funds.. all the damn investors are wanting their money back to hedge fund managers who manage over 3 trillion have to sell their stocks there fore forcing stocks down examples FCX and AUY major great stocks but hedge funds have to sell..
    References :

  2. Kevin R Says:

    In the short term, people tend to lose confidence when their personal view of the universe gets shaken. Investors tend to lean on gold, and other commodities rather than equity. I know it’s dumb, but it is a fact.
    References :

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