The stock market is given to be, by many well-coiffed market reporters, a lean well-oiled machine that takes as input all of the information in the world and spits out a value (or series of values) that accurately judges the state of the collection of people and business that make up the economy which balances perilously between prosperity and doom.
|Or is already doomed, depending on where you source your news.|
You might imagine the market like a race-car, driving along economy road reacting instantly to hairpin turns with tight handling.
|Vroom vroom (TM)|
Pages and pages of theory has been written on how clever the market is at reflecting the current global financial condition.
|Hiring is down... yay?|
|Same day, same news, different result.|
|"The market made me do it!"|
So let's say that the "market" is a vehicle.
|Don't ask about the mileage.|
It's big and cumbersome and can pretty much go where it wants. Who's at the wheel? These guys.
Even that guy who's sleeping.
Yeah, the one with the twitchy hands and the wild eyes.
So the drivers keep a steady hand on the wheel and re-adjust their course to intersect with the road.
Just kidding. They panic.
THAT's the stock market.
"So where should I invest my money?" you might reasonably ask.
"The stock market." I would say.
"But that doesn't make sense!" you might reasonably respond.
"I'll tell you about dividends." I'd say. "But that's a whole other story."
You must realize that "Let's Talk Investing" is not authored by a financial planner, advisor, or a professional investor in any capacity. As such, this is not expert advice in legal, taxation, financial, or any type of information that may be provided. The reader must realize this when reading these articles and must not rely on them as the ultimate source of information but must seek proper verification from the appropriate professionals before acting on any of this