I have been trading the stock market for over 13 years. Using insights gained fro an objective point of view of life, I found tricks and methods for succs

 Why do stock markets keep going up when the economy is so bad

Confusion is the worst form of psychological and emotional torture. This article aims to resolve the confusion caused by the conflict over how bad the economy can be and that stock markets are at all-time highs.

I have been trading the stock market for over 13 years. Using insights gained from an objective point of view of life, I found tricks and methods for success.

Let's start by explaining how stock market values ​​and movements are determined.

Markets are a weighted average of a very select and small number of firms. While there are thousands of public companies, the three major US markets those companies are listed in, do not represent the objective reality.

The Dow Jones Index is based on 30 companies, the S&P is based on 500 companies and the NASDAQ uses 100 companies. Although the Dow includes only 30 of the more than 5,000 US stocks, the total value of the 30 companies is about 25 percent of the total value of all US stocks.

They use a weighted average of only those few select firms to determine market value.

This means that if Apple rises significantly in one day, while most other companies in the NASDAQ drop, then the NASDAQ will rise, because Apple is a big company that outperforms all the others.

Apple is valued at over $ 2 trillion. If the combined value of all the other 99 companies is just under $ 1 trillion, for example, then Apple alone affects market movement and value by twice as much as the 99 companies combined. Likewise, if every NASDAQ company rises, but Apple falls, the market will fall.

Big corporations are awarded "votes," so to speak, by smaller firms.

In August 2020, the markets were at all-time highs, however, more than 60% of public corporations still incur significant losses.

Stock markets have nothing to do with the real world market, so a select few are all that matters.

My next article is titled; "Sentiment Based Stock Trading" will explain another market quickly leading people to bad investment decisions, and show you how to make money using a method that you developed and had 95% success.

People read about rising markets, buy shares in different companies, and those shares decline, and they are confused. "Why do my stocks drop, or not come back, if the markets are at all time highs?"

Because it is not an up or down market, just a few companies. Let's use the analogy of a shopping center. There is a big grocery store in the mall, and they are always busy, but the small independent stores have no business and are not making any money.

The mall owner says the mall has the highest sales ever, because the only tenant counting is the grocery store, ignoring the convenience stores.

Another example of how the wealthy took control of the markets was a joint effort between CNBC TV, one of the most viewed and trusted stock market shows, and Bill Ackman, the billionaire stock trader. Being a large fund manager and wealthy man, people trust and respect what Ackman says and follow his advice.

On March 18, 2020, Mr. Ackman was allowed to go in an emotional bustle on CNBC for more than 27 minutes, which is much longer than the other people they interviewed. He went on air with such an emotional petition about the Coronavirus and the possibility that it could be deadly, crying for his father's safety. Ackman named several companies and industries that he said would go bankrupt and the value of their stake would go to zero.

As he spoke, the stock markets collapsed as investors sold all their shares in those companies and others. This was the bottom of the market crash, as shortly after ending his TV talk, stocks began to recover.

One week later, CNBC reported that Ackman made more than $ 2 billion in profits that week, buying the same companies he said were going to zero and going bankrupt.

This is just my opinion but that looks like an obvious stock market manipulation by Mr. Ackman, with the support of CNBC. However, the Securities and Exchange Commission, the government regulator to protect people from this type of market manipulation, has done nothing about it. Once again, the super-rich get away with 1% devastating the lives of the little ones who have all sold out or been forced to sell their shares at big losses due to margin calls or panic during the market crash during his TV talk.

This is the kind of event that causes people to distrust the stock market. But we should not give up so easily.

The lesson I want to pass on to you is that the business world is based on greed, but you already know that. The real lesson regarding the stock market is; Accept the reality and find the ways they are trying to deceive you, then follow their tricks.

Don't get angry because they're liars and cheaters, this is just your definition of what they're doing. They call it smart business. Right and wrong are all a matter of subjective opinions. In this world, the opinion of the rich is one t