Investment Markets Will Adapt To Any Situation

Discussion in 'Stock Market Forum' started by longtermbull, Mar 29, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    If you look back over the last hundred years we have seen some extreme highs and lows in the worldwide economy and worldwide stock markets. Over the last decade we have seen historically low interest rates, difficult economic growth and the banking crisis which brought the worldwide economy to its knees. While things are certainly improving in areas such as the US, how do markets adapt to new environments?

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  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I think that markets are pretty efficient overall in the mid to long term. Not so much necessarily so in the short term - which makes for excellent opportunities to buy or sell individual securities in particular as they become overbought or oversold.
     
  3. longtermbull

    longtermbull Administrator Staff Member

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    Short term uncertainty is a traders friend as the downside is always overdone. Then when stocks do eventually rebound that always seems to be too enthusiastic!
     
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