Stock market’s million little dramas come down to supply glut

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Angst has been the stock market story of late. It soars, it plunges, and all the while investors fret over sky high valuations and pour over data to figure out when inflation will bring the house of cards crashing down.

But sometimes, like now, the problem is far simpler than that: too much supply and not enough demand.

"There is certainly something to the idea that demand for stocks is moderating, ” said Nicholas Colas, co-founder of DataTrek Research."The IPO window is always wide open until it shuts with a bang. That makes it something of a self-correcting part of the market.” "When deals start getting pulled, you’ll know the supply side of the stock market equation is starting to reset, ” Colas said.

 

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