• Adams Financial Concepts,  COVID-19,  Current Events,  The Investment Industry

    Why the Market Drop?

    You’ve heard the expression “The market is telling us … [fill in the blank]”. The reality is that the market cannot talk, cannot do a ZOOM meeting, cannot send us an email. It is not the market talking, it is the investors – human investors and  computer algorithms. To understand why this market drop I believe it begins with the process. When you buy a stock, you buy it with the expectation that it will rise in value. When you sell short a stock, you sell with the expectation the stock price will sink. Financial companies and institutions hire analysts whose job is to forecast future revenues and income. They…