We live in a global economy that is broken up by the different counties and their own as well. America needs the other economies (India, China, UK) to have growth if we want ours to do the same. We couldn’t be able to have positive GDP (Gross Domestic Progress) if the other counties aren’t buying from the U.S. and having it shipped to them.

Within our economy there are different sectors in it. Sectors are categories that the different stocks are listed in. The types of sector are, Airline, Agricultural, Commodities, Energy, Technology and many more then I care to list. Each sector can and will effect each other. You can’t expect the airline industry to do well if the commodity (ie. oil) is going up. If the economy is not doing so well (recession), you won’t see sales doing great in the technology sector.

Political issues will also effect the markets. Many times there are issues like taxes and assistance by the federal government that will help or hurt the market and certain sectors.

There are others things that effect the stock market, some that would take too long to explain in this post and others that would need you to be more advence in you knowledge in the stock markets. Point is, that you should not just study individual stocks without doing your due diligence in the overall markets themselves. Knowledge is power. Learn as much as you can to increase your strength in understanding the stock market