Stock market pause kicked in again. The pause is a stopgap that keeps the market from crashing. S&P 500 is down 10 percent. A loss of 10 percent, if it closes there at the end of the day, is the lowest since 1929. The great depression.
In case this sounds like mud to you:
S&P and the Dow are averages of stocks and other investments that pay interest to your retirement funds and other things. So, if you're a teacher and are expecting a certain amount every month when you retire, you get that money because your state takes all the money we give them and invests in various things, the stock market being one of them. The more diverse their portfolio the safer your retirement is. So if they invest your money in real estate and futures (like how much will corn cost a manufacturer next year), and the stock market...that is an example of a diverse portfolio (group of investments). When the brokers on wall street sell stock all at once because they think others will be selling that stock the price of the stock goes down. It's crazy I know but that's how it works. Who can sell before the next guy and lose the least. So that is the stock market in a nutshell cuz it's nuts!
No comments:
Post a Comment