Why Stocks Suddenly Drop

There are number variables that effect stocks and the stock market.  When you buy an individual security there are a number of factors which may affect the rise and fall of a stock:

1. Political events and the stock market – When elections take place or even potential candidates are running for office both domestically as well as internationally this may play a role on the stock market.  So, those shares of Apple stock which you thought were going to continue to rise regardless of the political environment may be eye opening.

stocksBoth domestic as well as international political events may cause either an up-tick or downward spiral in stocks.  Typically, when there is intense domestic turmoil this has a negative impact on stocks.  When an election takes place which involves one of our major trading partners which brings to power a hostile government this will affect stocks.

The opposite may also take place where one of our partner governments hold an election and the party that wins drives stocks higher.  In general, uncertainty within the markets from a political perspective, may drive stocks lower.

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easyMarkets

With over a decade of trading expertise and 100,000 fulfilled clients in 160 countries worldwide, easyMarkets will tick all your boxes whether you are a new or experienced trader, affiliate or introducing broker. Trade currencies, commodities, metals, vanilla options and indices from one place without the jargon, complicated offers and confusing terms! Welcome to the exciting world of trading. Welcome to easyMarkets.

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