, Columnist
Six Trillion Reasons for Stocks' Rise
The falling number of public companies is helping stock prices.
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One of the most basic concepts in economics is that price is a function of supply and demand. Yet, oddly, equity investors tend not to think much about shifts in the quantity of the stuff they’re buying and selling.
Factors that affect intrinsic value (earnings) are endlessly debated, as are the impact of central bank asset purchases on stock prices. But rare is the market report that begins: “The price of equities rose today because there weren’t as many good ones to buy."1503930899314