If market is forward looking, why does it ever go down?

Discussion in 'Economics' started by MK020, Apr 29, 2020.

  1. MK020

    MK020

    From what I've read investors are looking past 2020 and instead pricing stocks based on what they think future performance can be over a year from now. But why is there a limit to how forward looking investors are willing to be? Whether there's a V-shaped recovery or U-shaped recovery, the market eventually goes back to where it was. People are OK looking past 1 year, but not 2 years? Not 5 years? I don't fully understand.
     
  2. SanMiguel

    SanMiguel

    Hope
     

  3. Its like driving a car, you can looks and see far, but not soooo far
     
    S-Trader likes this.
  4. southall

    southall

    People buy and sell stocks for many different reasons.

    Not just where they think the market will be in six months or a years time.
     
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  5. 'Cause "shit happens". (That would make a good bumper sticker!) :)
     
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  6. smallfil

    smallfil

    The stockmarket will move the way it wants to move. It is sheer arrogance to think you know better. Why would you? Do you know every bit of information on any given stock? However, the Wall Street sharks know more than any aspiring retail trader because they have contacts within the various industries. So, they know fact from fiction. Focus on your trading if you want to make monies in the stockmarket. It is your best move.
     
    xburbx likes this.
  7. DaveV

    DaveV

    The further out you look, the more uncertainty there is. The market doesn't care whether sales and earnings are good or bad, only that they meet or beat expectations. More than anything the market hates uncertainty.
     
    S-Trader, lovethetrade and 1957may10 like this.
  8. Turveyd

    Turveyd

    People are stupid and led easily like sheep!!

    Market isn't related to anything real.

    I thought 25years ago, a stocks value was based on earnings via a calculation, not people buy price goes up if no 1 is selling. ( Business Value / Total shares ) = Actual Value but no!!
     
    lovethetrade likes this.
  9. ElCubano

    ElCubano

    Where is JCP? LVLT? Imagine 30 years ago LVLT was at $130.
     
    vanzandt likes this.
  10. Don’t forget it’s not only evaluation, it’s a biiig speculation too. Like you play poker......
     
    #10     Apr 30, 2020