Question

1. Some stock analysts and stock market analysts say that optimism is one of the most important factors for individual corporate stocks and for the stock market as a whole. What does this mean? Explain why you agree or disagree.

Answer 1

To start and run any business we must be optimistic i.e., we are optimistic about the going concern of the entity and its foreseeable future.

Nobody would tend to run the business with pacimistic views in a rational world.

Likewise in stock markets also the investors will invest with the optimistic view of increasing their worth and return on investment.

There can be many ups and downs in the market, and every down shall be treated as an opportunity in an optimistic view.

However we should be alert and keen with the situations and take decisions accordingly.

There are many factors that affects markets such as political,financial and global aspects.

The investors think of bullish market , so that the investment gets appreciated which is a optimistic view.

Thus the stock analysts and markets analysts statement of being optimistic is valid in a general business scenario expecting that the companies will perform better so that the market as a whole.

thank you ;)