What moves stocks in the long-term?

[zbojnik]

Does anyone know what moves stocks in the long-term?

 

[zbojnik]

And don't say supply/demand.

 

[Scataphagos]

Depends upon your parameter definition of "long term"... but in general... inflation, government deficit spending, currency destruction and government greed/power lust. All coordinate to move stock prices higher in the long run.

 

[dbphoenix]

Does anyone know what moves stocks in the long-term?

Investors' aggregated perception of potential growth and change in value. Once stocks have moved to those levels, the perceptions must change before stocks will begin a new advance.

 

[goodgoing]

Consumption. Go out and start spending and you will see your favorite stock moving up.

 

[zbojnik]

So earnings is the most important thing?

 

[goodgoing]

If no earnings at some point the stock falls. But investors look at potential of earnings. Google didn't have earnings for a while but potential was high. But I think at the end earnings is what counts most. Talking about long-term only.

 

[dbphoenix]

So earnings is the most important thing?

If that's directed to me, no. Earnings potential.

 

[Scataphagos]

So earnings is the most important thing?

You said "stocks", not a particular stock. 2 entirely different questions.

 

[zbojnik]

Well I meant individual stock. Where do we find out what the earnings potential is or what people think about the future of the company? I looking at the quarterly summeries or the sec-10k papers but I couldn't find anything. But I think the economy also has an effect on an individual stock.