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

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What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by MCUsman(m): 12:31pm On Sep 28, 2008
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
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by MCUsman(m): 11:42am On Sep 29, 2008
Nobody wit ideal yet
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by Cayon(f): 3:04am On Sep 30, 2008
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
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by MCUsman(m): 11:20am On Sep 30, 2008
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.
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by jaybee3(m): 11:37am On Sep 30, 2008
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
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by mrdollar1: 1:53pm On Sep 30, 2008
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.
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by MCUsman(m): 3:26pm On Oct 01, 2008
Thanks guys
Re: What Do Financial Experts Mean When They Say The Market Is Going Tom Crash? by mrdollar1: 5:52pm On Oct 01, 2008
you are welcome!!!!!

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