It is easy to make large profits by simply being long

Stock prices are a function of supply and demand, although other influences, such as earnings and the economy, might affect the desirability of owning or selling a particular stock.

After all, the stock market has rallied for eight years, notching record high after record high. The S&P 500 has almost quadrupled from the low during the financial crisis. For the weeks, we have been looking for the market to provide us with some pullback but it continues to push up.  Investing during bull markets can be easy money using buy and holding strategy. It would have beeneasy” to make large profits by simply being long.

 The laws of physics do not apply in the stock market. There is no gravitational force that pulls stocks back to even. Over ten years ago, Berkshire Hathaway’s stock price went from $6,000 to $10,000 per share in a little more than a year. Had you thought that this stock was going to return to its lower initial position, you would have missed out on the subsequent rise to $70,000 per share over the following six years.

Leave a Reply

Your email address will not be published.

Name *
Email *
Website