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HomeStocksFive factors that affect the rise and fall of the stock market

Five factors that affect the rise and fall of the stock market

There are many factors that affect the rise and fall of the stock market, such as changes in national policies, company operating conditions, international and domestic economic situations, major emergencies, and investor confidence.

  1. Changes in National Policy

These policies include monetary policy, interest rate policy, stock market policy, industrial policy, etc. Only by understanding policies can we grasp hot spots, seize investment opportunities, and avoid policy risks. For the stock market, there are two types of national policies. One is the one that affects listed companies, such as the “coal mine governance” policy and the “agricultural support policy”; the other is the policy that affects investors, such as adjusting the stamp duty on stock transactions. It will cause changes in the cost of stock trading, resulting in a rise or fall in the stock market.

  1. Company operating status

If the listed company corresponding to the stock operates well and has strong profitability, more and more people will buy and hold the stock, and the stock price will rise, forming a long-term upward trend; if the operating condition is not good, It will make investors lose confidence in it, so there are more people who sell stocks, and fewer people are willing to sell them, resulting in a downward trend.

The quality of the company’s operation, most people like to look at the profit, but the listed company’s own profit is packaged, such as investment income, non-operating income, and changes in fair value. So if you want to know the development of a company, you should mainly look at the main business income, because income is the source of a company’s profit. If the company’s revenue continues to grow steadily, then it can basically be said that the company’s development trend is good. If the company can still tell growth when the economic environment is poor, it deserves special attention.

  1. International and domestic economic situation

General domestic and foreign economic forms will also directly affect the company’s performance, and even life and death. Therefore, when the economic situation is good, the market will also show an upward trend. If the economy is depressed, the market will easily plummet.

  1. major emergencies

Major emergencies will have a direct impact on listed companies, causing economic losses and even damage to the interests of companies in certain sectors of the stock market. At this time, investors will be worried about the suspension of stock trading and company bankruptcy, so they immediately sell the stock, causing the stock price to fluctuate.

  1. investor confidence

For investors, confidence is “bullish” or “not bullish.” When a stock falls to a certain extent for some reason, some people think that there is a chance for a rebound and buy them one after another, making the stock trend from falling to rising; on the contrary, if a certain stock rises to a certain extent, some investors will think that If the stock price is too high, there is a risk that the seller will strengthen and the buyer will weaken, and there will be a downward trend.