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 I'm 23. Would it be a good idea to invest in the stock market?
Since stock prices are going so low, and I'm SURE they'll go up again before I retire, would it be a good idea to take a little money (maybe $500) and throw it into a mutual fund or ...


 When i should in invest in Stock Market !!?
Hai
I am student and i have learned stock basics and i want to do the practical. I have some money to start. But is it good if i start investing in my college life ?...


 What is the secret 27% Bank Account?
...


 Immidietly answer pls.?
will some one give me the cues abt trades from inner side of the stock exchange that wich will are rising and which will are not today. indian may reply me pls....


 Stock market Q's?
If you had $10,000 to invest 5 years ago who would you invest in? and If you had $10,000 to invest today, would you invest in Home Depot stock?...


 What is an Inception date?
...


 401K question?
My company is no longer going to match my contribution..they're not contributing anything. Do I benefit more by leaving it with my company, or moving it to an IRA account, or.....well, you tell ...


 What can I do to maximise my £500?
I have £500 and 1 month before I have to give it back. How can I make it "work" for me in the meantime? Want to make as much from it as I can.... (and I dont gamble)...


 Which is the best online trading portal for shares?
which is the best online trading portal for shares? i have been using icici. but it charges high brokerage. which is the best combination of good service, facilities and low bokerage?? plz help if ...


 What is the best place to invest $10,000 for just about 5 years?
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 What is a best way to invest a large chunk of money?
i dont want to invest it in stocks or savings accounts or nething but i have some money and i want to use it to start making more money without working......wats the best way to invest a large chunk ...


 Stock for Baby's Xmas?
I have an idea for a Christmas present for my newborn nephew, but I am not sure how to execute it. I'd like to start his investment porfolio by buying him a single share of stock. (I'm a ...


 What is mutual fund? Is it good for investment...?
please tell me in detail what are its advantages and disadvantages and who's mutual fund is best whether its tata, reliance, sbi or any other........


 Can i open a demant account online and without the knowledege of my parents??
...


 I want to get started investing but do not have a lot of money to get started. Any suggestions?
I have been looking at Share Builder with ING Direct but do not know anyone that has invested with them. Does anyone have experience investing with them?...


 What is mutual fund investment?
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 I have invested in different schemes of mutual funds principally of UTI, Birla Sunlife, PNB Principal and SBIM
now that index is falling rlentlessly I feeel exasperated what is the ...


 What is the difference between 'bear' and 'bull' markets?
There's a lot of talk today about the FTSE 100 being dragged into a 'bear' market. Can someone tell me what that means, and how it is different from a 'bull' market? How did ...


 Stock market?
does someone what to explain it to me? i'm planning on investing $800 a month into it, but i'm not quite sure how it works yet or anything haha. all i know is to buy when everyone sells, ...


 Can any one help me on a good investment company?
...



me
Why is it bad when people sell their stocks? I don't quite understand the market dropping like it is.?
I guess my question is why are people freaking out about sub prime mortgages, and why would they sell shares because of it?
                     
 




justme
Because of the insecurity of sub prime mortgages, and the fact that a percentage of these will end as re-posessions, some companies holding these mortgages could find themselves with liquidity problems. Investors in these companies will get nervous, and want to get their money out before the company collapses. These companies then sell their shares in other companies to get the money to pay out their own withdrawing shareholders. If a lot of shares in a company are sold, these shares drop on their price. This tends to make shareholders in other companies nervous, and they sell before the price drops too much. You then can get a snowball effect, but usually the market stablises itself after a short while, because most investers are there for the long term, and accept the minor rises and falls


King Midas
Rating
Because the motrgage rates effect a lot of things.


slavaret2
Rating
1) The market does not like uncertainty. Since nobody really knows how bad things are it's sell first and ask questions later.

2) If BSC/MSC/MER are looking at huge losses down the road they may be raising cash by unwinding some of their own trading positions. You don't want to get in front a multi billion dollar train.

3) Fear makes people act irrationally. Sell because everybody else is selling - so there you have a trend that feeds on itself.


Common Sense
Rating
Right or wrong people are scared that the "sub-prime" problem will effect the full economy. If the economy is effected, profits go down and the value of companies may be effected negatively.

If the companies are worth less... then the value perceived is less. Buyers won't buy at the perceived inflated levels. Sellers are scared that the stocks will go down further.

It's great you're trying to understand the market. I hope that you're not in it until your understanding grows. Getting in without a full understanding will cause you to sell or buy at the wrong times.

Good luck.


Life after 45
Rating
You can NOT go by the "news" reports. A lot of the selling is simply market adjustment. It went up too fast recently, people are simply adjusting. Sub Prime Mortgages is only a small piece of the pie, as is oil, gas, gold, etc.

There is NO "bullet proof" way to gage WHY the market goes up or down, despite the media hoopla! :)

Invest in a good company with a strong balance sheet and hold on, it's that simple. :)


kyle.keyes
Rating
Interest rates are going up. When interest rates
go up, the market comes down because the big
movers (money managers) move blocks of stock
into bonds.

To compound the problem, people who short
stock , are also selling, then buying back at the lower
price. And this gives added momentum to downward
slides.

The sub prime mortgages have added to the credit
crunch. Basically, this is because wages have not
kept up with inflation. Currently, there are too many
would-be home owners working at minimum wage,
who are trying to buy a half-million dollar home.

It's time the government stops mis-leading people
about inflation and the CPI (consumer price index)
Recently, there was a very interesting article in
the business section of our local paper. It simply
stated: "If we were to calculate prices the way we
did back in the 70's, we would be in double digit
inflation."


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