Market cycles are inescapable. Although it has been proven many times, such as in the period of the US stock market rising from the ashes of 1987 to its inevitable repeat in 2001, many still gaze in wonder as portfolios once richly promising luxurious retirement plans offer doubt as to whether one will have enough to retire with dignity.
Rather than be a culture full of bull market geniuses, it would be better to understand why stock prices rise and fall, and how investors can protect themselves when the next market rise ends.
Supply and Demand in the Stock Market
It sounds simple, and it is. Sometimes an investment security, such as a share of stock will rise simply because so many people want it.
