Learning the stock market: The impact of market fundamentals on share prices

Julie Brownlee, Fsp Invest, 17 Apr. 2014

Tags: learning the stock market, market fundamentals, effect of market fundamentals, market factors, share price

You might have heard the phrase: ‘You can’t beat the market.” This means that the market will always find its own level. And this gives a price that buyers and sellers meet. But there are things that affect the market and therefore the price of shares. So it’s important that you know what these are and the long-term effect on your shares. Let’s delve a bit deeper…

A proven path to a lifetime of wealth

Most people never hear about these opportunities. I imagine this sounds a bit mysterious. But I hope you’re intrigued.

Because the secret I’m talking about is something called The South African Investor.

And I’m inviting you to join us.

The effect of market fundamentals

Market fundamentals affect the price of shares. Every company on the stock market, to some degree is subject to market sentiment.

Why is this the case? Why should great companies have to worry about what the market’s up to?

The answer lies in that fact that there are some market factors that affect all companies, regardless of the size of a company or its stature.

Market factors that affect share prices

Market factors include things like interest rates, rate of corporate taxation, what’s going on overseas and any political developments, the team of experts at The South African Investor explain.

You need to watch out for bubbles emerging too in the stock market. Think about the dotcom boom and bust. This sector was so fashionable because of the arrival of the internet. It led shares in IT and telecoms to boom. Only to crash.

Once you’ve mastered THIS secret, you can use the stock market to write yourself a 13th cheque

Click here to discover the secret TODAY!

Don’t worry about market fundamentals over the long-term

Think of your shares like this…

You can easily sell you shares for cash. When there are times of economic uncertainly or wars, cash becomes more important. As you can easily sell shares for cash, this is what some people do. And this effects the share price.

Over the short-term, market fundamentals can have a bearing on the price of your shares.

Over the long-term, a company’s shares will reflect the true value of the business and its future prospects.

So there you have it, the impact of market fundamentals on share prices

Related QA

akossuth asked:
I am a new investor and about to embark on putting together my portfolio. I have an account with Easy Equities. Regarding your portfolio in your [read more]
Published at 13 Feb. 2018 in: Stock Market Share portfolio 1 Answer
oliviees asked:
Dear Gavin / Timon Regarding your cfd tip sent on 24 February 2017 for APN (Apsen), titled ‘Our broker’s top trade of the week’. I am [read more]
Published at 06 Apr. 2017 in: Stock Market Cfd 1 Answer
hjb777 asked:
Good afternoon, Please can you advise your recommendations (buy, sell and hold) on the following shares for 2017 (short [read more]
Published at 21 Feb. 2017 in: Stock Market Shares 2017 Short term 1 Answer
jacquesprinsloo77 asked:
Hi where can i get a detail table list on daily basis / live of all shares on jse + current volume traded + current /delaid price of share.? [read more]
Published at 08 Nov. 2016 in: Stock Market Helpdesk 2 answers
npadiachi70 asked:
my question for today is what advise can you give on trading binary options? is good or bad too rsiky or same as currency trading [read more]
Published at 12 Oct. 2016 in: Stock Market Online marketing 1 Answer

Related articles: