Why does the news seem to affect the stock market more now than in the past?
May 29th, 2010 | by admin |Curious George asked:
When bad news hits, the market drops significantly. We already know about the mortgage problems, that the banks are hurting and so forth, yet when this is on the headlines, people panic. What’s the deal?
Carolyn
When bad news hits, the market drops significantly. We already know about the mortgage problems, that the banks are hurting and so forth, yet when this is on the headlines, people panic. What’s the deal?
Carolyn
3 Responses to “Why does the news seem to affect the stock market more now than in the past?”
By me on May 29, 2010 | Reply
? maybe more people are investing in it and they are putting more of their money into it. they are many other reasons.
Enron has made people nervous about big business and a recession makes people even more jumpy. When they see bad news they can panic and try to act fast to keep from losing to much money.? maybe
By Nick Z on May 30, 2010 | Reply
Perhaps the economic news are now more bad than before.
And it’s not just the headlines that affect the stock market. Companies are now reporting their earnings and/or losses. And stock traders are watching these earnings reports very closely.
Citigroup has recently reported a $10 billion loss in the fourth quarter. And that’s not the kind of loss any self-respecting stock trader can scoff at.
Some other companies may be hiding big losses like that too. But eventually these companies will have to come clean. And that’s what the stock traders are afraid of.
By jueyanz on May 30, 2010 | Reply
More capital is deployed in the market by institutional investors using genetic algorithms. Basically, the same computer program tells hundreds of banks to sell at the same time… creating wild swings in the market.