How does a market ‘crash’?
In: Economics
Value is a concept. Things that were valuable on one day may not be valuable the next. Or vice versa. If enough things of the same type (homes, cars, stocks, banks, precious metals, etc.) all see enough of a shift at the same time… the market can crash. Investors aren’t usually LOOKING for losers. They want safety or a return on investment. So, the owners of the commodity lower their prices… and lower them more… and lower them more… until they hit a place that people are willing to buy in again.
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