Confusion is one among the worst mental and emotional tortures. this text is to resolve the confusion of the conflict of how the economy are often so bad and therefore the stock markets be in the least time highs. Using the insights gained from an objective view of life, I even have found the tricks, and therefore the ways to succeed.
Let's start with explaining how the stock exchange values and movements are determined.
The markets are a weighted average of a specific and really small number of companies. While there are thousands of public companies, the three main US markets those companies are listed on, don't represent the target reality.
The Dow Jones is predicated on 30 companies, the S&P on 500 companies and therefore the NASDAQ uses 100 companies. Although the Dow includes only 30 of the more the than 5,000 U.S. stocks, the combined value of the 30 companies is about 25 percent of the entire value of all U.S. stocks.
They use a weighted average of only those few selected companies to work out the worth of the market.
This means that if Apple goes up significantly in at some point , while most of the opposite companies within the NASDAQ go down, then the NASDAQ will go up, because Apple is such an enormous company that it outweighs all the others.
Apple is worth over $2 Trillion. If the combined value of all the opposite 99 companies is merely under $1 Trillion for instance , then Apple alone effects the movement and value of the market twice the maximum amount because the combined 99. Likewise, if every company within the NASDAQ goes up, but Apple goes down, the market will go down.
The big companies are given move 'votes' so to mention , than the tiny companies.
In August 2020, the markets are at an all time high, however, over 60% of public companies are still at significant losses.
The stock markets don't have anything to try to to with the important world market, the select few are all that count.
My next article titled; "Stock Trading supported Emotion" will explain another market quick that leads people into poor investing decisions, and shows you ways to form money employing a method I developed and is 95% successful.
People examine the markets rising , in order that they buy stocks in several companies, and people stocks go down, and that they are confused. 'Why do my stocks go down, or not return up, if the markets are in the least time highs?'
Because it's not a market that's up or down, but rather just a couple of companies. Let's use the analogy of a mall . there's an outsized grocery within the mall, they're always busy, but the tiny independent stores haven't any business and make no money.
The owner of the mall says the mall has all time highest sales, because the sole tenant that's counted is that the grocery , ignoring the small shops.
Another example of how the rich control the markets was a joint effort between CNBC TV, one among the foremost widely watched and trusted stock exchange shows, and Bill Ackman, a billionaire trader . Being such an outsized fund manager and man of means , people trust and respect what Ackman says and follow his advice.
On March 18, 2020, Mr. Ackman was allowed to travel on an emotional rant on CNBC for over 27 minutes, for much longer than people who they interview. He went on the air with such an emotional plea about the Coronavirus and it's deadly potential, crying for fear of his father's safety. Ackman named several companies and industries that he said would be bankrupt and their share value would attend zero.
You can watch the complete interview here https://www.cnbc.com/2020/03/18/bill-ackman-pleads-to-trump-to-increase-closures-to-save-the-economy-shut-it-down-now.html
As he was speaking, the stock markets crashed as investors sold all their shares in those and other companies. That was rock bottom of the market crash, shortly after he finished his TV rant, stocks began to recover.
One week later, CNBC reported that Ackman remodeled $2 Billion in profits that week, BUYING the exact same companies that he said were getting to zero value and bankrupt.
This is just my opinion but that seems like a clear manipulation of the stock markets by Mr. Ackman, supported by CNBC. Yet the SEC, the govt regulator to guard people from this type of manipulation of the markets has done nothing about it. Again, the half of super rich escape with destroying the lives of the tiny people that all sold or were forced to sell their shares at significant losses thanks to margin calls or panic while the markets crashed during his TV rant.
This is the sort of event that creates people distrust the stock exchange . But we should always not hand over so easily.
The lesson i might wish to expire to you is, the planet of business is predicated on greed, but, you recognize that already. the important lesson regarding the stock exchange is; accept reality and find the ways they're trying to trick you, then go along side their tricks.
Don't get angry that they're liars and cheats, that's just your definition of what they are doing . They call it smart business. Right and wrong are all a matter of subjective opinions. during this world, the opinion of the rich is that the one that they create the laws and rules supported . So play with their rules and you'll win.
But please, attempt to be a far better person with the cash you create than those who control the system.
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