How does a market ‘crash’?
In: Economics
Unpredicted economic catastrophe; 2008
Over enthusiastic expectations that don’t happen: 1999/2000 dot com
The stock market is a forward looking system; it’s not really looking at companies as they are today…but what we expect them to be in the future.
If reality in the future don’t match expectations prices will fall. If people sell prices fall. When these things happen prices can fall a lot.
Markets going down happen pretty frequently; every couple of years we have a small “correction” and then every decade or so a major crash….learn to accept this
Latest Answers