I see news articles about stock prices going up or down due to investor confidence or trust. How can group-think affect a stock price that rapidly is the value of the company is largely unchanged?

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I see news articles about stock prices going up or down due to investor confidence or trust. How can group-think affect a stock price that rapidly is the value of the company is largely unchanged?

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Anonymous 0 Comments

Remember that you are measuring price in dollars (you could also measure a stock price against gold, other commodities, etc).

Let’s have a look at the S&P500 valued against the M2 money supply:

[https://www.tradingview.com/chart/SPX/7Xwy9qNL-SPX-M2-Money-Supply-comparison-is-eye-opening/](https://www.tradingview.com/chart/SPX/7Xwy9qNL-SPX-M2-Money-Supply-comparison-is-eye-opening/)

Interesting isn’t it?
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