Why do people sell their stock if the results will harm the economy?

Why do people sell stock and cause the stock market to fall, messing up the economy?
To stock investors: please hold on to your stocks, unless it is invested in foreign companies. Don't join in these "sell" frenzies that are shown on tv and then the stock market falls, hurting the economy even more.
Please invest in the US: buy only stocks in US companies such as Disney, Harley Davidson, GM, Ford, Nabisco, General Electric, etc. Do not buy petroleum stocks: let their stocks drop to 5 cents: send them a message.
Buy American!

MONEY! GREED! MONEY! GREED! MONEY! GREED!

Stace

The stock market is an indicator of the health of the market. If the stock market falls its the investors who are hurt, not the companies. Normally when a stock falls or rises it is because of something the company did or did not do and the investors react to it by buying more stock at higher and higher prices or they sell at lower and lower prices.

So basically you have it backwards...The economy (and individual news events) is what causes stocks rise and fall...not the other way around.

I can understand the desire to speculate and then ask a question but try to get some real information before you make assumptions that aren't true.

they do it to make themselves rich(er).

Your thinking is simplistic. Do you realize that a large percentage of outstanding stock shares are held by institutions? - mutual funds, hedge funds, pension funds, etc. And investment is global now - many shares of U.S. companies are held by foreign investors and vice versa.

There are "resistance points of reference" that are taken into account by buyers and sellers who actually make the market make more sense by day trading. Some equities are overbought or oversold and so the trader moves in and out weaving to make money and take profits to make a living.

Anybody can do this. The more the merrier. Those who have more money can manipulate the market doing it, betting again on whether the stock will go up or down in a given period.

But if stock stayed the same value or increased the same as another, you would have an inefficient market and you would have no incentive for companies to improve their products and services. Part of their reward is to build respect in the marketplace, encouraging investment in their ventures.

When you see selloffs, it could be because someone or some organization or investment firm needs the money because of living expenses or to invest in something else, albeit commodities, currencies, bonds,etc... that they feel is more worthy of the cash because of earnings or future projected earnings from the information/promises of news flashes.

This is a matter of worthiness built upon information.

Happy Investing!

If people want to pay me more than I think a stock is worth in the current economy I will sell it to them.

When the stock price is lower than I think the stock is worth then I buy it.

I don't want to hold an asset that is going down in value.

Tax cuts for the rich and supply side economics is what is hurting our economy along with the war the Republicans refuse to pay for. They have hurt the 80% of us that work for wages which have NOT risen this decade while CEOs get 1,000% raises.

The deficit spending is lowering the value of the dollar in relation to other currencies. Half the price increase in oil is because of a falling dollar due to poor fiscal policies.

BUY oil company stocks so you get some of the money you are spending at the pump back in your pocket.

If I invest in foreign stocks then I am bringing some of the money they are making BACK in to the United States.

Nothing with economics is one sided.

Fear of missing out on the point at which their stock is valued at its highest. They fail to see the benefit of long-term growth of that stock. They are the same people who accelerate when they drive and then slam on their brakes at the last minute. Slow and steady wins the race.

Not that I do that but it is called survival of the fittest. Seems when we are faceless behind our computers we can do whatever we want to help ourselves be totally self indulgent and to heck with everyone else. It becomes all about me.

I wish I had better news but for now the world is mostly self indulgent sad but true

Because people are out for themselves, of course. America is not as patriotic as it use to be. Especially nowadays with the price of everything going up, people care about what little money they have saved, so if things are not going well in the market, it makes sense to them to pull their money out and hide it under the mattress, or in the freezer.

Why would you buy or hold stocks in crappy companies? That is the dumbest idea ever. If Ford and GM are still building huge SUVs and gas guzzlersno one wants, losing profits and laying off employees; while Toyota and Honda are building popular low costs fuel efficient cars that will stay in high demand... WHY SHOULD I HOLD ON TO BAD STOCKS?

The main forces at work affecting the stock market is the economy and the institutional traders. So even if we individual investors try to slow down any dips in the market by holding on to our stocks, it's not going to make much of a difference. Besides, it's unrealistic to expect people to have such a coordinated action, without regards to themselves

dont come to YA to rant.

there are other websites for that.

and DUH greed

Most people sell their stock to avoid loss and being bankrupt. In that way, they can still get or save their money or investment. Most people care about themselves than the economy.

Even though Im a day trader and I rely on their worries in order to make my money every week (Im the exact type of person you are talking about but probably worse because I never hold on to any stock longer than 2 days, unlike people who hold them for a few weeks, then panic and sell it when everyone else is), I agree with you about buy american. I wish more people would stop shopping at walmart too because companies like that have definately destroyed our economy. I wouldnt be so sore over it if walmart chose to sell products from democratic countries. Why does it always have to be china? I agree that americans should buy american products, but if they MUST go through other countries because its cheaper, why not go through a country that values the same thing as america (like taiwan or thailand) (I dont consider taiwan the same as china because they believe in democracy) instead of going through the anti-american ones that want to push communism into our country.

Edit: haha thumbs down? for what? Cuz I said we should go through taiwan or thailand. I live in Thailand half the year so its just as much my country as USA is. Sorry im open minded about places outside my borders. Theres no way that americans are only going to buy american. That is just dumb because we should encourage open trade with other countries. The whole reason we have terrorists wanting to blow us up is because they dont understand our values. The more we have open trade with other countries, the more we have a chance of promoting our values outside of our country. Rather then letting places like China promote their values. I dont want communism going into Thailand or USA. Thailand and USA both are free countries with freedom of speech (Well usa does have situations with "Dont Taze me Bro" so the cops and judges dont always honor freedom of speech in usa, but most people believe in it). I'd like to keep it that way. When USA only buys from USA, that will really hurt our country because then nobody will want to do business with us and our economy would be alot worse off. I just think that we should only trade with democratic countries that dont commit atrocities like China does and countries like that. By the way, I dont day trade american stocks. Its always international stocks that I trade because I dont trust american stocks because its my own americans who sell us out and buy stuff at walmart. Why should I buy into a country that continually sells itself to the bad guys and just dont care. I dont buy from walmart. Nothing in my house including my clothes is made in china. I live by this. Im sorry that most americans arent that strong in their morals to live like that. Im day trading because thats what im good at. Why should I hold on to a stock, when the american companies themselves are selling out to the bad guys. Every "american" company you mentioned has sold out to communist China, so why should I put my money in them (For example, if you look under the hood of a "Ford" automobile, all the parts are made in China)? Its because of them that my grandchildren are going to have a billion chinese soldiers trampling over them when the time comes. I only buy from democratic countries or american companies, but those companies dont always have the same morals that I have. Buying american stocks, and shopping at walmart, is canceling the other out. Walmart is the largest chain in the world, next to mcdonalds, and 99% of the stuff in there is made in China. That is damaging the country alot more than any stocks. The problem isnt buying american stocks, the problem is that your trying to convince AMERICANS of all people, to stop being greedy. We are the greediest country on earth. We are the epitome of capitalism. Your asking birds to stop flying. Not all of us are like that. But 99% of americans are.

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