Michel Pireu Columnist

Some of the things you think you know, just ain’t so.

People will tell you that it’s naive to think the laws of supply and demand apply to the stock market; that it would make investing too simple. That something far more complex determines stock prices. But that just ain’t so. Stocks are subject to the same law of supply and demand as any other product. Despite countless explanations as to why stock prices fluctuate as they do — anticipated earnings, balance sheet strength, cash flows, fear and greed — in reality these have little impact on prices other than how they affect the desirability of owning a stock — in other words, supply and demand. What’s not so clear is how this makes investing any easier...

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