What Are the Risks of Relying on Stock Market Performance?
While stock market performance offers valuable insights, it comes with risks. Market volatility can lead to unpredictable financial results, affecting long-term planning. Overemphasis on short-term stock performance may also lead to short-sighted decision-making, potentially harming the company's long-term viability. Lastly, external factors beyond a company's control, such as global economic conditions, can unpredictably influence stock prices.