Rally finishes

摘要

Whenever there is a stock market rally, the one certainty is that there will be a fall back in prices afterwards, and in one sense this is part of the definition - the fall in prices marks the end of the growth period, and if shares don't go back down then the rally hasn't ended yet. But there is also a clear piece of logic and psychology underpinning this. Having made profits on paper as share prices climb, investors are naturally keen to convert them in to cash -profit taking - before the markets start heading back down again. This can be a matter of nerves or judgement, and the irony is that the sell-off is what pushes prices back down.