Stock market, have downfall reach “bottom”?
We still remembered how the stock market collapse that began in October 2007. Investors suffered heavy losses (including me hehe). Could it be we can learn from the events of 2007′s?
Let us recall the events of 2007. Exposure in the stock market was started in June 2007. Case breakdown of credit in the housing sector in the United States, better known by Suprime Morgage started sticking. This makes the Dow Jones index of 14,121 fell approximately 11.8% in just 2 weeks. But market players still alert and consider the issue of Suprime Morgage only temporary. This makes the Dow Jones index back up for 2 weeks later and even reached a new high at 14,279.
But the domino effect of Suprime Morgage began to be felt. The first one affected is the financial sector that directly distribute Suprime Morgage. There is bankrupt, there is a big loss. We could call the Bank of Amerca, Citibank, Merryl Linch and more. Domino effect is also a chain to issue debt in several countries. Call it the Spanish, and Greek.This causes the stock market really crashing sharply during the period of almost 1.5 years. Dow Jones discounted more than 50%. United States Government under President George Bush to be preparing a bailout nearly 2,000 billion dollars in order to calm the situation.
Beginning in May 2011, the Dow Jones back choking. A variety of fundamental issues in the United States re-create the Dow Jones slumped. For about 6 months, the Dow Joneshas bounced more than 18%.
The condition causes may be different this time. Economic situation of various states also may have been another. But the behavior of stock market players remains the same. Euphoria when stock market rose replied. Scampered (panic) when stock market fell dramatically. Conditions domino effect also occurs due to margin calls (demands injection of funds to clients that using borrowed money from security companies)
Whatever people’s comments on the stock exchange about the current situation, the graph always gives the picture more. I deliberately compare the picture above to showthat the most likely decline will continue. The extent to which the decline will happen, let the stock market itself (via the graph) which gives out.
For those who are still inside, safe exercise heart. For those who are outside the stock exchange (already sell or liquidate all its shares), Please enjoy your first outing. On thestock exchange is always true ”summer day a year removed by rain in a day”.
