That is an excellent question, Alexis, and worthy of a long, in-depth discussion. However, the short answer is that market prices are based on the decisions of all market participants, regardless of whether they are basing those decisions on rational, fundamental data or irrational imperatives such as greed and fear. Essentially, market behavior reflects the sum total of all knowledge and emotion driving the decisions of its participants.
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Stock Market Continues Test Of Critical Support Level
That is an excellent question, Alexis, and worthy of a long, in-depth discussion. However, the short answer is that market prices are based on the decisions of all market participants, regardless of whether they are basing those decisions on rational, fundamental data or irrational imperatives such as greed and fear. Essentially, market behavior reflects the sum total of all knowledge and emotion driving the decisions of its participants.