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To a degree, yes. The stock market reflects investor sentiment about the viability of of the entities traded. If there's a notion that a company will be worth

To a degree, yes. The stock market reflects investor sentiment about the viability of of the entities traded. If there's a notion that a company will be worth more in the future and will either pay out a nice dividend or can be later sold at a profit, shares of that company will be in demand and the price will go up. If the company is expected to be losing money and not be worth much or paying out a nice dividend in the future, prices will be going down as everyone tries to sell shares and not be the last one holding something worthless. If a company sheds a bunch of jobs, that can signal a number of things. One of the things it signals is that it has reduced its expenses. Reduced expenses means, all else equal, less chances of it running out of cash or hitting other kind of money problems, and thereby improves its chances of weathering the coming economic storm. If you thought that Boeing shedding a bunch of jobs meant that it had just secured it's ability to continue to exist and be more valuable once the coming recession/depression is over, would you not want to buy shares now to sell at a nice profit later?

rapsey 6y ago
> If there's a notion that a company will be worth more in the future and will either pay out a nice dividend or can be later sold at a profit, shares of that company will be in demand and the price will go up. Or if they are sure the FED will keep it from falling
- korethr 6y ago
  I argue that falls into my point above. If there is a sentiment that by having a thing now, and by either holding it or selling it later, it will make you money, there will be demand for the thing. Whether being able to sell it later for a profit is because of an intrinsic increase in its value or because the Fed propped it up is immaterial. You bought a thing, and later sold it for more money.

rapsey 6y ago

> If there's a notion that a company will be worth more in the future and will either pay out a nice dividend or can be later sold at a profit, shares of that company will be in demand and the price will go up. Or if they are sure the FED will keep it from falling

korethr 6y ago
I argue that falls into my point above. If there is a sentiment that by having a thing now, and by either holding it or selling it later, it will make you money, there will be demand for the thing. Whether being able to sell it later for a profit is because of an intrinsic increase in its value or because the Fed propped it up is immaterial. You bought a thing, and later sold it for more money.