Submitted by [deleted] t3_yhvajp in personalfinance
Bob-Doll t1_iug2dba wrote
Reply to comment by Petersm66 in The DJIA is up 14.4% in October it’s best month since 1976. by [deleted]
That’s kind of the point. Unlike rational markets, when stock prices fall demand falls as well. People sell their stocks because they’re afraid it will fall more. And then there’s all the doom and gloom in the media.
And then, out of nowhere, the market rises 14.4% in a month. And people start to get interested again. But the people sold at the low are now buying it at a higher price.
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