Demanding a Supply of Better Answers

In the previous post, Portfolio Bunny said, "There is one and only one thing that causes the market, sectors of the market, or even individual stocks to move in one direction or the other." You were asked to guess the answer. Did you guess it? Did you try?

Well, the market went up over the past few days. Do you know why?

Actually, the answer is just three little words, but before I give them to you, let's give you a few more chances to figure it out yourself...

I'm sure you've noticed gas prices are higher than they were a year ago. Have you wondered why?

How about the higher prices at the supermarket?

And what about housing? In some areas of the country, there was a housing shortage and the prices were increasing as much as 50% a year! Now, there's a glut of new homes on the market and housing prices are decreasing.

So, what do all of these things have in common? Three little words -- supply and demand!

Supply and demand is a basic economic principle. And that, ladies and gentlemen, is what causes the price of stocks to go up and down. Now, you know why the market goes up and down. And now you are smarter than the dumb bunnies who still think it is caused by war, interest rates, or any of the other nonsense the talking heads offer up.