Stock Exchanges : Supply and Demand

Prices are a reflection of supply and demand
If demand is greater than supply prices rise and conversely if supply is greater than demand prices fall
Where stock exchanges are concerned the mature stock exchanges like New York and London had a high demand on stocks as these exchanges were mature , had good quality stocks which produced growth and dividends
On the other hand , the emerging markets were immature and although most of them had produced capital growth , dividend income was lacking
However , the emerging markets are slowly but surely maturing and unfortunatley the mature markets have been hit by a credibilty issue brought upon by the way in which the credit crisis has unfolded ( lack of insight on the part of the big players and subsequent collapse of these players) and the way in which it has been handled( market forces been interfered with by poiticians )
If market forces are not allowed to play themselves out , then the credibility of the market is called into question
Now the emerging markets appear a much better proposition
Hence, supply has increased
Demand will now be distributed over this wider supply
Prices will come down .