I’ve been trading stocks for less than a year. However, I feel like I’ve noticed a trend where there will be an announcement about the economy and stock prices will soar for about 2 days, and all the articles will say it’s because investors are feeling so confident. Then after about 2 days, a lot of stocks will suddenly drop…and all the news articles will come out saying it’s because everyone is nervously awaiting the next update.
It feels like it’s a constant 2 steps forward 1 step back; stocks are going up in the long run, but also keep dropping constantly because of the supposed “anxiety around Federal announcements”.
Is this a typical year-round thing? The Feds make an announcement every week. Is everyone just constantly in a state of anxiety over what the next weekly status update is going to say? Because that can’t be healthy.
And if that is the case, then why doesn’t everyone just invest either quarterly or long-term so they can stay sane?
Are they expecting the Feds to suddenly say the economy is collapsing? I can’t see them so close to giving a disastrous announcement that it’ll cause mass country-wide chaos and make the entire stock market tank within a day. So, why is everyone so itchy…with their hand seemingly on the panic button 2-3 days each week?
What am I not comprehending? Someone please explain this to me because I feel like I’m naively out of the loop…like everyone knows a secret that I don’t.
(Edited for a spelling error)
