How did the Coronavirus cause the stock market to crash?
Keys to understanding the stock market and how it can plummet in minutes.
Según Graham en el corto plazo las bolsas reaccionan con locura ante las malas y las buenas noticias, haciendo que los mercados suban y bajen como si se tratara de una montaña rusa.
Y eso es lo que hemos estado viviendo recientemente cuando -por la rápida propagación del coronavirus y la caída del precio del petróleo- los mercados bursátiles han estado extremadamente volátiles.
Mientras el lunes Wall Street cayó más de 7,5%, el martes la principal bolsa estadounidense subió 4,9%, animada por el anuncio de medidas de estímulo económico por parte de la Casa Blanca.
Mucha gente se pregunta cómo funcionan las bolsas, por qué se desploman y vuelven a subir, y cómo les puede afectar.
What determines the price of stocks?
A key factor in determining stock prices is expectations—that is, what investors believe might happen in the future. They ask themselves how much a company is worth and, therefore, what its stock price should be.
What are you really buying when you buy a stock ?
A share is a stake in the ownership of a publicly traded company; if the company does well and you have bought shares, you will receive dividends.
The mystery lies in knowing when to buy and when to sell.
"Stock markets are a psychological reflection of society" because they move in relation to people's expectations.
Why do they collapse?
If the stock market is a psychological reflection of society, in a situation of panic or financial stress, "those interested in buying want to buy at a very cheap price and those who want to sell are willing to do so at any price."
Thus, with the law of supply and demand in full play, buyers take advantage of the low prices and the stock price plummets.
Is investing in the stock market risky?
"There is an inverse relationship between risk and return," "The less risk I am willing to take, the lower the return I can expect."
And among the different investor profiles, there are also the so-called traders or "speculators" who want to make money in a short time.
"The more the stocks fall, the more money they make. And speculators take advantage of any movement, whether it's upward or downward."
What do algorithms have to do with it?
Currently, there are robots that buy and sell stocks; there are more transactions made by robots than by humans, and these speculate on stocks based on current supply and demand.
