The market has varied since the start of the investing process and the past couple of days. After buying another $10 worth of ETF known as IShares Core S&P 500 (IVV), my individual value or holdings started at around $485. It went down to almost $476 between March 14th through 20th, and the highest standing was around $493 after the market grew on the 20th. Due to various events and current circumstances, such as the Nvidia conference and the Federal Reserve foreseeing three interest rate cuts, the market is subject to change throughout the following week. Although the market is known to vary continuously and is highly unpredictable, certain events can help predict whether the market will rise or fall throughout a few days. The potential for the three cut rates caused the market to rise on the 20th, although it is not certain, so it is predicted the market will go back down until another situation causes it to grow more. The market changes according to consumer preferences, supply and demand, or new technology. If more people want to buy a stock than sell it, then the price increases. The market can drastically change from even one small event or announcement every week or day. "The direction of a trend does not always indicate an increase or decrease in prices. For example, if a stock's price increases for several days in a row, this does not necessarily indicate an upward trend" (The Beginner's Guide to Understanding Market Trends). There are many trends an investor can look at, although they are not set in stone and can always change. Another trend is the change in the volume of trading activity. When volume increases, more investors are buying and selling stocks, which can lead to higher prices and vice versa. One of the most important things to look at when investing and predicting the market is news and rumors about specific stocks or companies. Investing will always bring income growth or loss depending on many factors.
“The Beginner’s Guide to Understanding Market Trends.” FasterCapital, fastercapital.com/content/The-Beginner-s-Guide-to-Understanding-Market-Trends.html. Accessed 22 Mar. 2024.
Come back next Friday for another investing update! Thank you for reading, and if you have any questions, email me @ apratt24@vms.edu!
Comments