Stability is a word that is almost unheard of in the stock market. This is because the prices of a vast majority of the stocks are always going up or going down, never remaining constant. But in certain times it is noticed that the price of all of most of certain kinds of stocks move in one particular direction. When this happens, it is referred to as a ‘trend’. It other words it might so happen that though the overall price of stocks in the market have gone up, but the price of one or two industries have decreased.

However it needs to be mentioned here that this pattern just for a day or two would of course not make it a trend. This upward or downward movement has to be happening over some time, and that too for most of the stocks in that particular industry. And when this is what is happening, it can be said to be a trend.

What Causes Stock Market Trends And Examples Of Some Trends In Recent Times

There are many factors that may lead to a trend.

• In recent times the real estate and the housing markets the world over has not been doing great and so in most stock exchanges it can be seen that the realty stocks in general have suffered a set back. Their prices have come down in general and they have stayed down for some time now. So this is a trend.
• After the September 11^th terrorist attacks on the World Trade Center, the stock prices of technology companies suffered greatly. Many people lost money all over the world, thus making this a worldwide trend.
• Decisions made by the Govt. and other business federations also can cause a trend. For example when the oil prices go up the cost of living goes up too, which is of course not good news for most people and the stock market in general. But this has just the opposite impact on the stock prices of oil companies. Since they are able to increase their revenue earning, almost always the stock prices of these oil companies go up.
• Other factors that cause stock market trends include droughts, floods, famines, and wars.

It has to be mentioned that stock market trends cannot be created by the normal market pulls and pushes that is the result of the constant tussle between the bulls and the bears. The trends happen from something that is bigger than this. An event perhaps that impacts the entire industry.

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