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What r the reasons for fall of stock market, too much.?


what to do with investment, in loss presently.,

The fall of the stock market is a relative term. The Dow (an old measure by which many track the value of the stock market) is at approximately 12,000 today. It was at 10,000 in March of 2004 and 9600 in March of 2000.

Stock prices fluctuate and the press tends to focus on short term results. The latest bruhaha is based on the Dow hitting 14,000 in October of last year.

In general, one would be well advised to avoid investing in the market unless you can leave the money invested long enough for short term fluctuations to work themselves out.

Also you should never put all your eggs in one basket. One shouldn't invest in the market until one has enough money to invest in the stocks of 5 or more companies. (Diversify)

There ARE funds that one can invest in that accumulate money from a number of investors and then invest in any number of stocks in order to diversify their investments. These are mutual funds and (more recently) exchange traded funds.

If you've suffered a loss on a stock you CAN sell that stock and take the loss off your taxes or you can wait for the value to come back. Of coure that depends on what company you've invested in. WorldCom and Enron are two examples of companies that never came back.

Overall though, in the last fifty years, common stocks have traditionally yielded a higher return on investment over any other common investment. Gold, Real Estate, Artwork etc.

Fall of the stock market is a reflection of two things: faith in the market itself and faith in the economy. Safest incestments are US savings bonds. Bonds in generally are better, but if you have been following the news lately, the ratings by Moody's (a rating company) and such have not been accurate of the level of risk associated with them. US savings bonds are the safest, but because they are safe they have a small amount of return.

Good luck with your investments

The stock maket is a place where buyers & sellers meet to trade stocks. There is only one thing that determines the price of a stock - BUYERS.
If there are many buyers, more than sellers, the price of a stock will rise, if there are no buyers, the market will fall.

When Buyers become afraid, they don't buy, so the market drops, and there are many reasons that make buyer afraid.

You never buy a stock unless you know when and where you are going to get out. You never hold a stock if its value drop more than 10% of its cost.

The stock market runs on fear and greed. When people get greedy, stocks tend to become overvalued. When people become fearful, stocks tend to become undervalued.

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