Why do stock prices move?
Stock prices and the market as a whole move up and down all the time. Anything from a new product launch to recent media coverage, or even a politician’s tweet, can change how people feel about a company. As people’s long-term views change, they may buy or sell stock, which in turn may change a company’s stock price.
For example, when Amazon announced they were buying Whole Foods, their stock price went up.
So, what’s the strategy?
Long-term investors don’t get caught up in the day to day movement of the market.
When you see prices move, it’s a great opportunity to see what news may be impacting a particular company or the market as a whole. As you learn more over time, you can continue to re-evaluate your long-term view of a company.