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What Do Financial Experts Mean When They Say The Market Is Going Tom Crash?

Does it mean all the money you have invested will completely be loss and you will not receive a dime, or it means that the shares will fall to their lowest level?

Please some one educate me extensively as I plan to invest 520, 000:00 in the stock exchange hoping that in a year, two at most the market will regain its loss glory

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7 answers

it means,

the value of your money is going to

reduce.

you can still make profit from your

investment if you decide not to sell your stocks

but keep it for the long term Then when the

bull returns to the market you can now decide to

sell and take profit.

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Newbie

The heading says "Tom Crash" rather than "To Crash"

They probably mean it's not a good time to invest as world economy is on a downturn (recession (0% growth) in most established markets, negative job creation, massive inflation)

Crashes are driven by panic (investors being afraid of a continuous bull market that seriously need correction) as much as by underlying economic factors (economy downturn as explained above) such as corruption and greed (CEO's selling highly risky financial products like sub-prime mortgage)

However you can still find good haven by investing in companies with less risk of going bust (some commodities like gold because it is being driven by supply and demand, agricultural products)

Stay away from banks as they carry the highest risk

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You ve not explain what i want to ear.

My question is If the market crashed

1. Have i loss my money completely

2. Or the value of the share is only going reduce considerably.

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All i know this is one example why market crash. Banks have been giving loans to people that should not be getting loans. it goes something like this:

You want to buy a house, you get a large loan.

You start paying it off.

You find you can not pay it off

You sell your hhouse.

The price the house is sold for is less than can cover the loan

the bank has lost money

If this happens thousands of time the banks begin loosing millions of dollars. When a bank collapses then people cant trust investing in banks.

As a result hard assets (gold etc) increase in value, money decreases in value.

If money decreases in value, things begin costing more money (because money is worth less)

If things cost more, companies cant pay their workers . workers get fired, unemployment rises.

One thing I've learn from my mother is not to put all your eggs in one basket.

Peace

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