Really? People find this confusing? Probably not. Probably just a guy looking for hits. The answer is pretty simple. There are different type of stock traders, some are buy and hold, others are buy and sell. Buy and sell traders don’t actually care about the value of the company in relation to the price of the stock, they just care is somebody will buy for more than they paid. And with internet trading buy and sell traders took over the market. Stock prices no longer have any relationship to the economy or performance, they just relate to buzz and whether or not somebody else will pay more soon.
Stock prices no longer have any relationship to the economy or performance, they just relate to buzz and whether or not somebody else will pay more soon.