Personal Opinion and Financial Decisions

Fundamentally, all market activity is in one way or another a response to the interaction of personal opinions. Someone wants to buy, someone wants to sell, and thereby a market is made. The decision to either purchase or sell represents a judgment of the state of a business, how the market is reacting to trends, and how certain stocks will fare.

The motivations of buyers and sellers are not well enough understood for any very precise theory to be constructed around them. All of them concerned with the hard information that presumably influences investors with some recognition of the emotionalism that is also involved.

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