Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-09-21
In the equity capital markets, institutional investors (including institutional investors, fund managers) as well as some investment consultants and market analysts, the forecast of future trends for the stock price often prefer the help of some, such as interest rates, exchange rate, inflation rate of economic indicators . Attention to market trends, however, Eliot believes that if economic indicators can simply ignore the major trends in the market to make investment decisions and the basis for action, then destined to lose everything. It should be said, based on past market performance, the market itself is a pioneer in economic trends observed, although in a certain period, a number of economic factors in a particular area will affect the stock price fluctuations, however, this relationship is not the eternal unchanged. Sometimes, the market decline will occur in the fall before the recession, but also sometimes will be the contrary, the market decline will lag behind the economic decline. Another situation is that the occurrence of inflation or economic contraction in the period of time will result in a bull market, but in a certain period of time, but it will influence the market result in a wave of bearishness.
For the fluctuations in stock prices, even though subject to some additional spending, credit expansion and contraction and other deficits and the impact of Tonghua, Elliott's Wave Principle will still be reflected in the trend of the stock price volatility on the financial factors that affect investors more would involve the banks, merchants or government in dealing with financial decisions. This case, in all activities, active factor is interrelated, while the wave theory also just appeared out of the public in general psychology.
Edited in the gold-line
