Wall Of Worry

DEFINITION of 'Wall Of Worry'

The financial markets' periodic tendency to surmount a host of negative factors and keep ascending. Wall of worry is generally used in connection with the stock markets, referring to their resilience when running into a temporary stumbling block, rather than a permanent impediment to a market advance.

BREAKING DOWN 'Wall Of Worry'

While a "wall of worry" may sometimes consist of a single economic, political or geopolitical issue significant enough to affect consumer and investor sentiment, it more commonly comprises concerns on numerous fronts. The markets' ability to climb a wall of worry reflects investor confidence that these issues will be resolved at some point. However, market direction once the wall of worry has been surmounted is impossible to ascertain, and depends on the stage of the economic cycle at which it occurs.


For example, the markets' ability to climb the wall of worry is most clearly discernible at the end of major bear trends, which means that the markets may continue to advance once the wall has been surmounted. However, a continued advance is much less certain if the wall of worry forms near a major market peak, in which case a subsequent decline is more likely.

RELATED TERMS
  1. Party Wall

    In real estate, a shared wall that separates housing units. Party ...
  2. Chinese Wall

    The ethical barrier between different divisions of a financial ...
  3. Block Trade

    An order or trade submitted for sale or purchase of a large quantity ...
  4. Wall Street

    1. A street in lower Manhattan that is the original home of the ...
  5. Ascending Tops

    This refers to a series of peaks, each peak higher than the previous ...
  6. Block (Bitcoin Block)

    Blocks are files where data pertaining to the Bitcoin network ...
Related Articles
  1. Investing

    Why Wall Street Is A Key Player In The World's Economy

    Wall Street is just one little street in lower Manhattan, but both empirically and symbolically, it continues to make the world go round.
  2. Personal Finance

    Presidential Candidates And Wall Street In 2016

    Wall Street's influence will play a large role in the 2016 presidential race. As election season begins, candidates are showing their true colors.
  3. Markets

    Is Perception Fueling Markets?

    Is perception playing a bigger role than economic readings when it comes to equities?
  4. Professionals

    How To Land a Wall Street Job Out of College

    Getting a job on Wall Street right after college can be difficult, but there many paths that eventually lead to Wall Street.
  5. Managing Wealth

    Making It Big On Wall Street

    Read about some of the most glamorous Wall Street jobs and what it takes to land one.
  6. Professionals

    How To Get A Job On Wall Street

    Although Wall Street has its share of problems, finding people who want to become traders isn’t one of them.
  7. Professionals

    How To Get A Job On Wall Street

    There are many roads that lead to Wall Street, but here are some of the more direct routes.
  8. Markets

    Small Cap Research Can Have A Big Impact

    Don't rely on Wall Street analysts for information on these stocks.
  9. Retirement

    6 Tips to Stop Worrying About Retirement

    Try some creative thinking and these smart moves to take the pressure off.
  10. Markets

    The Upside of Picking Stocks Nobody Follows

    Learn about the upside of picking stocks nobody follows. The less followed a stock, the more opportunity there is for a stock being incorrectly priced.
RELATED FAQS
  1. How is something "brought over the wall" in an investment bank?

    An analyst who lends his or her expertise to an underwriting department is said to have been "brought over the wall". In ... Read Answer >>
  2. Where does the name "Wall Street" come from?

    As with many of the famous streets and roads in the world, Wall Street's origins have historical significance. Its name is ... Read Answer >>
  3. Where did the term "tenbagger" originate?

    On February 15, 1989, Peter Lynch's investing book, "One Up On Wall Street", made its debut. At the core of the book was ... Read Answer >>
  4. What does the saying "What's good for Wall Street is bad for Main Street" mean?

    Let's start by defining the terms "Wall Street" and "Main Street". Wall Street, in its broadest sense, refers to the financial ... Read Answer >>
  5. How to identify the ascending tops of a security or indicator?

    Discover how to recognize an ascending top pattern on a price chart, and learn why many traders consider ascending tops to ... Read Answer >>
  6. If the stock market is so volatile, why would I want to put my money into it?

    In this question, volatility refers to the upward and downward movement of price. The more prices fluctuate, the more volatile ... Read Answer >>
Hot Definitions
  1. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  2. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  3. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  4. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  5. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
  6. Weighted Average Life - WAL

    The average number of years for which each dollar of unpaid principal on a loan or mortgage remains outstanding. Once calculated, ...
Trading Center