By Brad Klune
For anybody who has ever questioned why the stock market appears to defy logic and common sense, Brian Feroldi’s latest book, Why Does The Stock Market Move Up? is a must-read. Feroldi provides readers with a unique perspective on the factors that drive stock market growth.
Brian is a financial educator with 350,000+ followers on Twitter, 50,000+ Youtube subscribers, 40,000+ newsletter readers and a run a hugely popular online course. If you want advice on frameworks and mental models to help you invest better, you can book a one-on-one video call with him today.
Human Emotion Drives the Market
A fascinating aspect of Feroldi’s book is his emphasis on the role of psychology in stock market investing. He argues that human emotions such as fear and greed often play a larger role in stock market movements than economic fundamentals or company performance. For example, when investors become too optimistic and start buying stocks at inflated prices, a market bubble can form that eventually bursts and leads to a sharp drop in prices….