The trouble is there is a big difference between what is foreseeable and what is forecastable. No one can predict how long stocks will continue to fall and how far they will go.That said, it’s a fair bet that the volatility will be a feature of markets – at least in the near future. Intraday movements have been extreme in the US – moving through a 4 per cent arc during some recent sessions.
Tech stocks are often profit-poor but potential-rich - and as a result their value is negatively affected when interest rates are high. And unsurprisingly the shares that were hit hardest everywhere were those that had risen the furthest when the market was on the ascendancy.In Australia falls were dominated by tech and healthcare stocks, which have been categorised as growth stocks.
buy low sell high ,,,,,, simple
And media is helping them to shake the small investors with doom& gloom headlines so funds can pick up cheap shares. Take inflation and raise in interest rates FUD for eg, Selling stocks that can go up 20% - 100% or more per year because interest rate may go up 1%-2% per year ?
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