The stock market is influenced by a variety of factors, including: Economic indicators such as Gross Domestic Product (GDP), inflation, employment, and interest rates can all impact investor confidence and influence stock prices. Company performance as investors will look at a company's financial statements, earnings reports, and other metrics to gauge its financial health and future growth prospects. Government policies, elections, and international events can all affect investor sentiment and the stock market. Market sentiment refers to the overall mood of investors and can be influenced by a variety of factors, including media coverage and investor sentiment surveys. Changes in interest rates can affect the stock market by influencing the cost of borrowing money and the return on savings.
Paul Goetzinger MPA
Basically, stocks are shares in a company. Shares that can be invested in or sold when the time is right.
What effects stock prices? Many things. This includes interest rates from the federal reserve, pandemics, inflation, a recession, political unrest, like a war in Ukraine, and other elements like low sales reports. Good economic news makes them go up, like low inflation, low interest rates, world economic stability and good sales reports.
I think the key to success is to get into stocks when the prices are low, and hang on to your stock shares until the economy improves and prices go up. Then sell the shares at a profit. Also remember that stock shares earn not only earnings, but also dividends, which are taxable under IRS rules.
- You want to buy low and sell high. This will allow for maximum profit. Look for companies that you believe have a chance to grow in the future.
- Look at external economic factors. Events like the pandemic and war will cause the stock market to struggle.
- Pay attention to news about companies that you invest in. This could give you insight into what decisions you should make.
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For now, I reccomend that you look into index funds and paper trading. An index fund is essentially a group of many stocks. It goes up when the overall market is doing well and visa versa.