Question

i need 500 words on this topic no copy paste please.

Is the stock market "out of control?" How can the poor benefit from this financial institution?

Answer 1

Well, Out of Control according to me has two meanings either it can go up or it can go down.Stock market can go down for various reasons like entire global economy in crisis, or the issue may be specifically to country, or one particular sector is getting affected more.For example in 2008, US economy crashed because of the real estate sector fall down and then it spread to entire country and later to the entire world.

Stock market crashing is considered not good for the economy as it might affect the export import businesses of the country ultimately affecting the Balance of payment.It will also impact the job data as there will be an increase in the unemployment level.

If stock market is bullish that means the investors believe that the stock prices are increasing.If stock market increases then it makes it difficult for the buyers to buy.Stock market can increase because of various factors such as any kind of positive news about the country like the same President getting elected as it was predicted by the research agency,or any important treaty being signed between the countries which makes the businesses easy to establish or anything positive about one particular sector dragging the stock market up.

Stock market is highly volatile.Poor people may hardly have any cash left after their daily expenditure.Even if it is left may be very little amount .Hence they cant afford to loose it.If they want to invest they can better go for the bond market where the risk is low as the interest rate is fixed.I would suggest to thoroughly research the company as well as the situation through which the stock market is moving. If they want regular income then they can go for company which gives timely dividend.If they are looking for appreciation of the value better be a value investor and invest for long term.