If some stock categories get too hot-and-pricey, mass supply is created via stock offerings to tap that cheap money - and, when overdone, drives it all down.
Sentiment: NEGATIVE
As the Nasdaq soared in 1999 and early 2000, demand for many offerings far exceeded the supply of shares available at the initial offering price.
Big companies often use their leverage to take stakes in would-be suppliers, especially in the technology business.
One of the reasons so many people get burned in the market is because they start buying as they see prices going up.
Prices have stayed up because people in control of supply decided they could keep them up.
There is a supply for every demand.
Tough times helped many commodities producers become lean and mean through consolidation, mergers and cost-cutting. All that excess supply has been sopped up.
Stock market corrections, although painful at the time, are actually a very healthy part of the whole mechanism, because there are always speculative excesses that develop, particularly during the long bull market.
The chief problem with the individual investor: He or she typically buys when the market is high and thinks it's going to go up, and sells when the market is low and thinks it's going to go down.
The stock market is overpriced. Everything is overpriced. Junk is king.
Supply always comes on the heels of demand.