50ft>The point I'm making is that these movements have nothing to do with the real businesses .... ie fundamentals
Correct its not the fundamentals of the stocks. However it is the fundamentals of the market participants, their broker statements, their bottom line. Dont think of a share price chart as a chart of the company or the index. Think of it as the chart of the change in the balance sheet of the people who own it.
When houses went up, initially because of fundamentals, home owners "equity" increase because its the difference bewteen the price and what they owe. Suddenly the are richer, can borrow more, and are supremely confident. Works in reverse.
