Why Stocks Fluctuate in Price

This video explains the two reasons why stocks go up and down in price. They are:

1. Shifts in investors' required rate of return
2. Changing expectations regarding future cash flow.

The video also discusses how investors' use of heuristics and narratives help them cope with the uncertainty of whether a companies future earnings will increase or not, and how those expectations can lead to increased volatility in the stock market.

Money For the Rest of Us is a personal finance channel on money, investing and the economy with new videos released every Wednesday.

Please subscribe to my channel here: https://www.youtube.com/user/jdavidstein1?sub_confirmation=1

You can get more info about Money For the Rest of Us here: https://moneyfortherestofus.com

Видео Why Stocks Fluctuate in Price канала Money For the Rest of Us