Article: Hopes on trade issues combined to good earnings will trigger a general bounce this week.

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That is once again the proof that U.S.-China trade talks/concerns and are the most powerful catalyst for the stock market. I wonder if there have been any changes made lately in practical [URL="http://yourhomeworkhelp.org/do-my-accounting-homework/"][COLOR="black"]accounting[/COLOR][/URL] theory and financial statements for investing.

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[QUOTE=TerryLewis;33275]That is once again the proof that U.S.-China trade talks/concerns and are the most powerful catalyst for the stock market. I wonder if there have been any changes made lately in practical [URL="http://yourhomeworkhelp.org/do-my-accounting-homework/"][COLOR="black"]accounting[/COLOR][/URL] theory and financial statements for investing.[/QUOTE]

Markets have greatly changed in the past 10 years due to the Fed's liquidity injections and now QE tightening. Funds have hence developed liquidity variation detection mechanisms that have been programmed into automatic algos trading strategies.

The China/US situation, Trump's tweets and similar situations are triggers, but the movements themselves are greatly amplified by liquidity based strategies combined to the automatic movements amplification produced by index funds.

As I wrote in today's comment, [I]suddenly, at 14:18, money came into the S&P500 and large NQ8 stocks. Algos caught on and started buying IBB at 14:34, then even the small caps at 14:36.[/I]

That evolution can be seen below and points to automatic algo based trading.

But yes, you are right, besides the mark-to-unicorn assets valuation method, none of the accounting or financial statement theory has changed in past years.

Pascal

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