Post by Rialtalia Secundia

In the course of the month of March the NCAA has a basketball tournament. It is so well identified and soo numerous games are played that the entire month of the tourney is labeled “March Madness”. The tournament game scores are volatile. Scores can change at a rapid pace and the winner can change inside minutes. A team that was leading by 10 points can lose simply because the pace is changing so rapidly inside the game. In the stock industry, the month of March is also called “March Madness” with really related characteristics of chaos.

Throughout the month of March, the stock marketplace will have various sectors moving in and out of favor. Say, for example, the Net sector is leading, and out of nowhere the massive industrial sector starts leading. Since of these movements some stocks such as low-priced stocks will move very large. Typically entire sectors or groups will be moving. The greatest movers are normally beaten-down, low-priced stocks that move huge percentages.

There are several factors for the stock industry “March Madness”. Checks from taxes are seen as one reason for the boost in volatility. A tax-refund check may be used to acquire stock. Investor mood from the winning or losing of a NCAA game is seen as yet another variable. Investors get quite emotional over the win or loss of a game and may possibly irrationally purchase or sell stock as celebration or therapy. Industry flux can also reflect the madness of the basketball fans. Anything goes. Some stocks will go out of favor and some stocks will come into favor. The sleepers will wake and move.

There are numerous influences on why the stock industry experiences “March Madness”. The strongest indicators are increased volatility and sectors moving in and out of favor. If you are seeking to score, your best bet is keep your eye on the movers.

About the Author

Vixiana Nyseia chats about the economic markets and ria compliance. She also talks about some of the regulatory compliance topics of the day. On her days off she walks on the strand and does Yoga.

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