The Bouncing Ball Theory for Stock Markets
Published / Last Updated on 23/01/2020
Stock market volatility is very much like bouncing a ball up a hill.
Each step you take up a hill, you bounce the ball up and down but gradually you are still climbing the hill.
This is the same for markets, they move up and down but it still gradually climbs.
Markets may bounce many times as you climb the hill but eventually and gradually it does climb with profits, with economic growth, with interest rates and underlying inflation all pushing markets upwards.
