Price Fundamentals: Macroeconomics
Market prices move for two main reasons. We’ll call the first price fundamentals and the second supply and demand (Table 5.2). These two are highly related, but to understand them we will look at each separately. The first is the fundamentals. We’ll break fundamentals down into two main areas: macroeconomics and company specific news.
TABLE 5.2 Market Price Movers
| Price Fundamentals | Supply and Demand |
| 1. Macroeconomics: Is the economy doing well or not?2. Company specific news: Is a particular company doing well (i.e. making money or losing money, growing quickly or slowly, winning market share or losing market share, financially stable or unstable)?These fundamentals lead to market price direction. In ... |
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