What Drives the Market?

I can remember when I was in the MBA program at Baylor, a professor gave us quite a few articles to read. 

These articles seemingly proved mathematically that a chart will not predict the future. 

So according to these authors, if you chart the price points of the stock going up and down, it will not predict the future.

Well, as a young man I sort of doubted whether that was true. 

That’s because at that very same time my grandfather was making a lot of money in the stock market. And he seemed to be predicting what the stocks were going to do. 

Now, his trades were not day trades, but he wasn’t investing either. He would get in and out of the stocks at opportune moments.

I knew that my professor was missing something.

But I didn’t really know what it was. Something in me just didn't believe what he said.

So who was right? My professor or my grandfather? 

Well it turns out they were both right. That’s because no one predicts what a stock will do using only a chart. 

What is it that makes stocks do what they do? 

It turns out there are 3 things that influence what stocks do… These three things are what drive the market. 

Want to find out what those three things are? Listen to today’s episode!