Market Up - Market Down

So, what makes the markets go up one day and down the next; or up one week and down again; or up over a few months only to drop again over the next few months?

Some of the talking heads on CNBC or the Nightly Business Report would have you believe it's the economy. Another talking head will tell you it's the Federal Reserve raising or lowering interest rates. Yet another of the "experts" will tell you it's China or India. Then, on Lou Dobbs, someone else tells you it's the problems in the Middle East. Finally, someone from a brokerage firm tells you it's the housing market. Eventually, if you listen long enough, you will probably hear someone blame the market shift on El Nino!

The fact is all of these things can affect the market--good or bad. But none of these things cause the market to move in one direction or the other. 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.

Can you figure out what that is? If you want to take a guess at it, feel free to send your guess in Bunny Chat. Otherwise, stay tuned and Portfolio Bunny will give you the answer... It might surprise you!