7 ms·

You're forgetting that the stock of more than one company is traded.

• bo1024 7y ago
  Can you explain how that impacts my mental model / questions? Are you pointing out that some companies may be barely affected by coronavirus and some a lot?
  • crystaldev 7y ago
    Yes, and also some companies may be affected more by their own fortunes, or the fortunes of their particular industry, than by the mood of a monolithic "market."
    • Scarblac 7y ago
      But it seems to be accepted wisdom nowadays that nobody can pick stocks and beat the average consistently. So what a large chunk of the market ends up doing is buying index trackers or achieving the same goal by spreading investments as widely as possible.
      • perl4ever 7y ago
        The nice thing about indexes is there are so many of them... I read somewhere there are actually more ETFs now than individual stocks.