What happened to the stock market?
I am not good at interpreting the stock market ups and downs, and I am a noobie on the economics.
Recently this week, every major news papers and news TVs report that there something bad happened the U.S. stock market, and it is affecting the world.
Can anyone tell me what exactly happen and explain to me in easy way?
I honestly do not know what happened to the stock market, and all I know is it is not a good sign.
Can you also tell me, how bad is it? Is it so bad that it deserves to cover the front page of the news paper?
And what will happen as a consequence of this happening?
Thanks in advance.
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Short simple answer is BAD NEWS also makes GOOD NEWS for TV. No one ever likes to report on things that are going well it is boring.
With that being said the stock market is always going to have rough patches. The recent decline is an issue related to the mortgage lenders and foreclosures in the housing industry.
Even in bad time like the past few weeks people with knowledge of what they are doing in the stock markets will be fine. It is people that blindly throw money into the markets without knowledge that lose their shirts.
So unless some major catastrophe occurs the markets will rebound just fine they always do. Overtime you simply can not beat the average returns the stock market will bring you if you invest with knowledge.
The websites below all contain plenty of FREE information to get you started in the right direction if you want to learn more about how the markets work.