/biz/ - Business & Finance

Stocks will keep going down at least until they start going up again. We will know for sure when that happens because price changes will switch from a downward direction to an upward one. The main indicator that we can use to identify this switch is that we will begin to see stock prices rising instead of falling. That will tell us when returns on stocks have changed from negative to positive. With positive returns, then the value of stocks will grow rather than shrink. Thus, the prices at which stocks are bought and sold will be going up instead of going down. Until then though, stock values will continue moving downward rather than upward.

Stocks will keep going up at least until they start going down again. We will know for sure when that happens because price changes will switch from an upward direction to a downward one. The main indicator that we can use to identify this switch is that we will begin to see stock prices falling instead of rising. That will tell us when returns on stocks have changed from positive to negative. Because returns are currently positive, that means the value of stocks is growing rather than shrinking. However, with negative returns however, then the value of stocks will shrink rather than grow. Thus, the prices at which stocks are bought and sold will be going down instead of going up. Until then though, stock values will continue moving upward rather than downward.