The longevity of surging stock prices
In a market which has not heard good news for some time now, suddenly there is an upward movement in the stock prices. When a group of buyers choose pick a few stocks and buys them in anticipation, others may follow them leading to a surge in the prices of that stock. This is only the beginning of upward movement. It actually happens when a company does something new or great, it catches attention of the buyers, hence increasing its volume and prices.
Similarly when these stocks do not perform according to the expectation of the buyer the prices go down and the stick starts sinking depending upon the other factors too.
Toronto Stock Exchange has experienced an upward movement in the stock prices recently. The stocks in metals, mining have shown a great improvement in their prices. Oil and energy sectors are also proven to be great performers in the last few weeks.
Metals and Mining stocks have risen by more than 4% whereas Oil and Energy sector has shown an improvement of about 3% in the last few trading weeks.
The market has risen after the better than expected performance of many companies in Canada and US both. The assurance of the banks to support the reforms has also improved the economic faith of the market.
More than 400 companies have performed much better than the speculations of experts in the field.
The move has been supported also by the announcement coming from US Labor department which says that approximately 3.8 million job openings have been made in US. This has shown the trend of better employment opportunities which was somehow seized in the beginning of this year.
Experts like Ian Nakamoto, Director of research at MacDougall says, that the market is in risk environment and the recent job openings in the US market has helped the Sensex to perform better.
In spite of a better performance there are warnings from the experts who believe that the issues in Europe should not be forgotten and hence people should act wisely on embracing any kind of risk.
Experts also suggest that the volume is not high due to summer vacation and the real test for market would come in September. The Eurozone debt crisis is yet not over which leaves many of the experts with a little concern.
German companies are still facing a setback due to less of demands from Europe where the economy is not in a stable state.
Of course Europe is trying to stabilize things again and hence the markets have felt a little relief attracting the investors.
The stock market is moving up in zone and the economy is slowing down in the other, hence people and investors would make decisions wisely after making all possible calculations. Making a hasty decision might yield great benefits but also can be exposed to greater risks. Hence, observation is the key to any kind of investments one is likely to make.
Reyan Hunt - About Author:
The stock market is moving up in zone and the economy is slowing down in the other. Hence to get more information regarding the stock-investment-strategy, please visit: www.thedollartimes.com
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