Video: Making Cents Episode 34
Making Cents Episode 34
Wed, 18 Oct 2017 17:17:29 +0000Making Cents Episode 34Making Cents Episode 34http://chic.clipsyndicate.com/video/playlist/12942/7136195?cpt=8&wpid=2637KLSTbeen speaking to numbers and ages well the stock market continuing to reach all-time highs could you explain what or how this happens? well whether you're reporting on it or i'm trying to use it to help my clients achieve a safe and comfortable retire the market returns, like the sp 500 continues to set new records these are important numbers let me give it a try with the couple of minutes we have there are two primary categories that influence the stock market's volatility. both rising like of recent and going, down which we have not seen in quite a while. number1 and the most influential i would describe as the fundamentals. meaning the economy is doing well and growing, for us that means individuals are employed earning wages, then you have companies providing goods and services that those employed are buying. like apple they produce an i- phone individual buy them then investors/money managers say apple has great products/services, people are buying them so we want to own shares of apple and the price because of demand for owning it goes higher. make sense? yes / no comment? that piece is the logical and we have tons of individual facts and figures to evaluate measure and monitor it's the biggest and most important part of what moves the market, such as an index like the sp 500 what's the other part? well that's somewhat the intangible part but is real and influences the volatility of the market it has to do with how investors are feeling. how they are feeling and thinking about what the future might be. they are surveys that try and measure this but just like you can start your day feeling great or not one thing can happen that changes how your rest of the day goes good or bad. for our recent market highs some have tried to capture this sentiment calling the market movement "the trump bump" have you heard the phrase? y/n but what does that mean or how does this influence the market? for the current period the general feel might be, "are we in or going to stay in a business friendly environment?" how that influence the market starts first with business leaders or owners who must think about the future. back to apple they had to commit some time ago to spend the money to research and produce the newest series of i- phones. so that decision puts money into the economy and then investors who look at the price of apple stock and say if i buy this today will someone be willing to buy it from me at some time in the future for a higher price. and so they must think will the future be positive or negative and this feeling combined with fundamentals can move the markets and they do. so two general factors have taken our markets higher solid fundamentals and positive feelings about current and future events. do you have any thoughts about the future?