Stock Market Update – How Global Events Affect Your Investments

A big part of being a smart investor is staying up to date on current events and how they might affect your investments. Even if your investments are only in companies in one country, global news is important to understand because our economy is now so interconnected that events in other countries can impact shares of companies in the United States. Additionally, local regulations can influence much larger national companies. At a basic level, stock prices change in the marketplace by supply and demand. If more people want to buy a stock (demand) than sell it (supply), the price rises.