What Drives Stock Prices ?


An interesting infographic from VisualCapitalist shows us the main forces that move stock prices, it is however important to add a fundamental one

Here is the infographic:

What Drives Stock Price?

That’s all very interesting and not far from truth, but, the most experts will have noticed that there is one big thing that is missing here.

Stock prices are primarily driven by expectations, every trader tries to be a “prophet” by forecasting the future and, by doing this, expectations are created.

Note that this is also the mechanism responsible for creating financial bubbles, that’s how finance works, whether you like it or not.


Altri articoli

Lascia un commento per primo

Leave a comment

Your email address will not be published.