Category: Money tips Release Date: 2006-05-23
Economic factors, the economic cycle, the state's financial position, financial environment, international balance of payments, industry changes in economic status, the state of exchange rate adjustment will affect the price of the ups and downs.
The economic cycle is caused by the inherent contradictions of economic operation of economic fluctuations, which is not with people's will for the transfer of objective laws. The stock market directly affected by economic conditions, must also present a kind of cyclical fluctuations. Economic recession, a weak stock market decline inevitably followed; economic recovery and prosperity, the stock will rise or show strong rise in the trend. Based on past experience, the stock market is also often a barometer of economic conditions.
The country's financial situation to a greater inflation, stock prices will fall, while fiscal spending increase, the share price will rise.
Financial environment to relax, sufficient capital in the market, interest rates, deposit reserve rate cut, a lot of hot money from banks to the stock market, stock prices tend to rise there; countries tighten the money supply, shortage of capital in the market, interest rates, stock prices usually fall.
Place the balance of payments surplus to stimulate the country's economic growth will lead to rising stock prices; while a huge deficit, it will lead to the national currency devaluation, stock prices generally will fall.
Political factors, national policy adjustments or changes, the change of leadership in the international political storm frequent in the international arena to play a more important country transfer of power between nations fighting in certain countries or even a strike wave of labor disputes and so often lead to stock price volatility .
Factors, the company's own shares their own values the most fundamental factors in determining stock prices, which mainly depends on the issuing company's operating results, credit levels and associated dividends from dividend distribution status, development prospects, the stock level of expected return.
Industry factors in the status of the industry changes in the national economy, industry prospects and development potential, the impact of new industries attracted, as well as listed companies in the industry position, results of operations, business conditions, changes in funding mix and leadership level personnel changes, etc. will affect the prices of related stocks.
Market factors investor trends, intentions and manipulation of large, inter-firm cooperation or cross-shareholding, credit transactions and changes in futures trading, speculators arbitrage behavior, the company's capital increase means and replenishment, are likely to Shares of the formation of a greater impact.
Psychological factors investors who are after the effects of various aspects of psychological state of change, often leads to mood swings, misjudgment, and make blindly follow big, Kuangpao buying behavior, which often is caused by soaring stock prices plunged an important factor.
